ASEAN fintech startups attract record funding

ASEAN fintech startups attract record funding

Funding for financial technology (fintech) startups in ASEAN more than tripled to hit a record of 3.5 billion USD in the first nine months of 2021, according to a report.

Funding for financial technology (fintech) startups in ASEAN more than tripled to hit a record of 3.5 billion USD in the first nine months of 2021, according to a report.

The report, titled FinTech in ASEAN 2021, was released on November 10 by the Singapore-based United Overseas Bank (UOB), PwC Singapore, and the Singapore Fintech Association (SFA).

It showed that 167 deals, including 13 mega-rounds or funding rounds of over 100 million USD, accounted for 2 billion USD or 57.1 percent of total funding.

The payment sector saw the highest amount of funding as digital payment adoption spiked in the region, with investors placing more confidence in the segment. The sector saw a 244 percent compound annual growth rate (CAGR) to 1.9 billion USD in 2021, from 562 million USD in 2020.

In terms of spikes in 2021 CAGR, investment tech led the way, recording a 493 percent surge to 457 million USD, from 77 million USD in 2020. Cryptocurrencies come second at 424 percent to 356 million USD, from 68 million USD last year.

Singapore continues to take the lead in ASEAN in this regard, securing 1.6 billion USD, or 49 percent of the 167 deals. It is followed by Indonesia with 904 million USD funding secured, and Vietnam with 375 million USD of funding secured.