Key Australian FinTech investment stats in Q1 2024:
• Australian FinTech deal activity reached eight funding rounds in Q1 2024, a 73% decline from Q1 2023
• Australian FinTech companies raised a combined $12.2m in in Q1 2024, a 79% reduction YoY
• PayTech was the most active FinTech subsector with three deals, a 38% share of all funding rounds
In the first quarter of 2024, Australian FinTech companies experienced a significant decline in activity, completing only eight deals. This represented a 73% decrease compared to the same period in 2023. The total funding raised by these companies amounted to $12.2m, marking a 79% reduction YoY.
Marmalade, an invoice payments platform, had the largest Australian FinTech deal in Q1 2024 after raising $10.4m in their latest venture round, led by BlueStamp. The company has set itself the aggressive target of reaching one billion dollars of payment volume through the platform in 2024. Built by a founding team consisting of leadership and early investors in Afterpay, Marmalade has seen impressive growth to date, transacting over half a billion dollars annually. In the last year alone, it has seen a 65 percent increase in customer numbers and 100 percent uplift in payment volumes and revenue year-on-year. “SMBs are the lifeblood of the Australian economy with entrepreneurs and leaders taking incredible risks to build a business that grows. Often frustrated by the limited support of traditional banking products, our customers are looking for new, innovative ways of managing their working capital and seeking a flexible, debt free alternative that puts their business growth back in their own hands, not the bank’s. It’s been exciting to see the continued diversification of our customer base to now also appeal to the mid-market, across various industries” said Luke Trickett, Cofounder and CEO, Marmalade.
PayTech was the most active FinTech subsector with three deals, a 38% share of total deals. All other subsectors had one deal each.
In May 2024 the latest legislative move by the Australian government took place with the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, commonly referred to as “the Bill,” introduces significant policy measures targeting Australia’s financial sector. Firstly, they established a structured framework governing the Reserve Bank’s (RBA) intervention powers in times of crisis, ensuring swift and effective responses to potential disruptions in the financial market infrastructure. Secondly, the reforms empower regulators with enhanced authority to issue directives and employ a wider array of enforcement mechanisms, bolstering their capacity to maintain market integrity and stability. Lastly, the reforms involve the transfer of ministerial powers to the Australian Securities and Investments Commission (ASIC) and the RBA, streamlining licensing and supervisory processes for entities within the financial market infrastructure sector. Together, these reforms aim to fortify Australia’s financial system against emerging risks and reinforce regulatory oversight for sustained resilience and efficiency.
