FinTech funding in Singapore looks set to soar this year as H1 2017 sees over $150m worth of investment already
Until the close of Q2 2017, 2015 was the year that FinTech in Singapore saw the largest amount of funding across a single year, with $140.2m. However, the first half of 2017 already surpassed that value by 13.4% with $159m-worth of investment, and is more than seven times the amount of funding 2014 received. In contrast, last year saw a downturn in both figures compared with 2015, with investment falling 23.6% and deal activity falling 9.4%.
The record-breaking funding levels in 2017 were achieved by rise of larger deals rather than increased deal activity. In fact, deal activity is on track to remain at similar levels to last year and below the peak of 53 transactions reached in 2015. This resulted in an average deal size, in the first half of the year, much larger than previous years. The average transaction size in H1 2017 was $6.1m, whereas for 2016 and 2015 they were $2.3m and $2.6m – 37.7% and 42.6% of H1 2017’s average, respectively.
Q2 2017 was a record quarter for FinTech investment in Singapore with over $125m invested
- Q2 2017 was the largest and most active quarter the FinTech sector in Singapore has ever had, with a total of $128.8m invested across 21 deals. This $128.8m is over 90% of the total funding the sector saw in the previous five quarters combined.
- After a continuous quarter-on-quarter fall between Q1 2016 and Q1 2017, deal activity rose sharply in Q2 2017. The record number of transaction of 21 was accompanied by growth in investment that was more than four times the funding levels from the opening quarter of the year and a 50% increase on what was seen in the second quarter of last year.
- The largest deal in Singapore’s record-breaking quarter, was received by local technology-driven life insurance provider Singapore Life; the investment was led by Impact Capital Holdings and came in the form of a $50m Series A round in late April.
Over $200m was invested across Singapore’s top 10 FinTech deals since 2014
- $220.8m was invested across the top ten deals to Singapore-based FinTech companies since the start of 2014, the largest of which was the previously mentioned $50.0m Singapore Life funding round. That deal was followed by the $36m Series C round received by AI and Big Data powered monetisation platform Metaps back in 2015.
- Also in the top ten is smart-contract on the blockhain company Qtum, whose $15.6m funding round came in the form ICO. Qtum used multiple cryptocurrency exchanges/crowdfunding portals to conduct the ICO – these included Bizhongchou, Yunbi, and ICOAGE, among others.
- Another notable inclusion includes trading platform Singapore Diamond Investment Exchange (SDiX), which claims to be the world’s first commodity exchange using physical diamonds as capital. They raised a $10m Series B in Q2 2017, in a round co-led by the firm’s own co-founder Alain Vandenborre and domestic VC Vertex Ventures.
- Half of the companies featured in the top ten received Series B or later stage funding rounds. The crowdfunding financing of Qtum along with Series A rounds for Singapore Life and Quoine, were the only early stage funding rounds on the list. MatchMove and WB21’s funding round stages were undisclosed.
Over 25% of the FinTech companies in Singapore focus on Payments & Remittances innovation
- Payments & Remittances companies occupy 26.8% share in Singapore’s FinTech sector as of the close of Q2 2017 – equivalent to 33 active companies. Examples of companies include online payment service provider Red Dot Payment and online inventory and order management company TradeGecko.
- FinTech companies in Singapore are well distributed across the sector, with WealthTech being the only other sector to have more than 10% of the share, with 22 companies. One of the most prominent Singaporean firms in the sector is OOjiBO. The company’s solution works as a full stack retail banking system on a mobile phone.
- Sector comprising of less than eight companies occupy the ‘Other’ category, which include Institutional Investments & Trading, Blockchain, and RegTech, among a few others.
The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2017 FinTech Global