According to FinTech investment statistics published by FinTech Global, the world’s leading provider of financial technology (FinTech) information services, FinTech investments slipped globally in May 2023, with both investment and deal activity down considerably from last year’s levels.
FinTech Global noted that the number of FinTech deals across the globe amounted to 452, reflecting a significant 42 per cent drop compared to May 2022.
In a similar trajectory, FinTech deal activity also dropped four per cent from April 2023. Overall, FinTech companies collectively raised $3.2 billion, indicating a substantial 65 per cent year-on-year decrease.
The Fintech Global data also showed that the U.S was the most active FinTech country in May 2023 with 189 deals announced, a 42 per cent share of all funding rounds. Meanwhile, the UK came in the second position with 31 deals, a 7 per cent share of deals, while India was third with 21 deals, a 5 per cent share.
During the period under review, BoltTech, an international InsurTech, raised the largest deal in the month, raising $196 million in its latest Series B extension funding round, led by Tokio Marine, a multinational insurance holding company headquartered in Tokyo, Japan. The fresh capital sets BoltTech’s valuation at $1.6 billion.
BoltTech stated that it will use the proceeds of Series B to further fuel its organic growth, including investments in proprietary technology, digital capabilities for business partners and end consumers as well as talent across BoltTech’s 30+ markets.
In addition, it said the funds will be used to explore inorganic opportunities to accelerate international growth.
Meanwhile, total transaction value for digital payments is projected to reach $9.5 trillion, globally in 2023, with China on track to have the highest cumulated transaction value at $3.6 trillion
Digital payments are also expected to reach a compound annual growth rate (CAGR) 2023-2027) of 11.8 per cent between 2023-2027, resulting in $14.8 trillion by 2027.
InsurTech Deals in the First Quarter
Meanwhile, in the first quarter of 2023, the number of InsurTech deals in Europe declined by 51% compared to the levels recorded over the same period in 2022, with a total of 37 transactions.
The average European InsurTech funding round reduced 39% YoY to $6m. European InsurTech deals accounted for 26% of global InsurTech deals in Q1 2023 with InsurTech companies completing 177 deals, globally.
Superscript, a business insurance provider, had the largest European InsurTech deal in Q1 2023 after raising $55m (£45m) in their latest Series B funding round, led by BHL Holdings. Superscript plans to use the funds to further develop its underwriting and broking capabilities, enhanced by machine learning.
The company has a fully “self-serve” online platform that allows customers to buy and manage insurance online with the help of machine learning technology. It will also expand its range of insurance and products and services for “international distribution” following the opening of its office in Rotterdam last year to support its growth plans in Europe.
Having seen more than a fivefold increase in its customer base since its £8.5m Series A raise in 2020, the company now counts Amazon Business and Virgin Money Bank among its partners.
The UK was the most active InsurTech country in Europe with 14 deals, a 38% share of total deals. France was the second most active with six deals, a 16% share of deals and Germany was third with four deals, a 11% share of total deals.