Venture Capital funding in the financial technologies sector fell 52 percent globally to USD 2.4 billion in the third quarter this year, says a report.
According to the quarterly state of fintech VC investment report by KPMG and CB Insights, VC-backed fintech companies raised USD 2.4 billion in the July-September period, down 52 percent over the same quarter last year.
The number of deals during the period under review fell 12 percent from the previous, April-June, quarter while funding was down 17 percent, the report said.
"This quarter, Asia outpaced North America in terms of fintech funding a major shift from historical norms," KPMG International Global Co-Leader of Fintech Warren Mead said adding that this trend is likely to continue in the future.
VC-backed global fintech deal activity fell for the second consecutive quarter, marking its lowest level since the second quarter of 2014.
At the current run rate, total annual deals are projected to drop from 2015's peak of USD 5 billion, it added.
"The Indian Fintech sector is going to witness a renewed interest in payments in wake of the demonetisation measures viewed last week," Neha Punater, Partner and Head, Fintech, KPMG in India said.
As per the report, next-gen payments have attracted over USD 1.2 billion in VC-backed funding till September this year.
The top 20 deals, including Affirm, Mobikwik and One97, raked in 67 percent of the total funding to payments technology companies in the first three quarters, it added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
