Key United Kingdom FinTech investment stats for 2024:
- UK FinTech deal activity dropped by 61% YoY
- Average deal value hit a new high at $21.8m in 2024
- Zepz, a leading digital money transfer service, had secured one of the largest UK FinTech deals with a $267m funding round
UK FinTech deal activity dropped by 61% YoY
In 2024, the UK FinTech market witnessed a sharp decline in both funding and deal volume compared to previous years.
Total funding in 2024 amounted to $7bn across 323 deals, reflecting a significant 54% drop from the $15.4bn raised in 2023 and a 43% decline from the $12.3bn recorded in 2020.
Deal volume also fell steeply, with the 323 deals in 2024 marking a 61% decline from the 830 deals completed in 2023 and a 71% decrease from the 1,109 deals seen in 2020.
These figures highlight a challenging year for UK FinTech companies, with subdued activity amid shifting market conditions.
Average deal value peaked at $21.8m in 2024
Funding from deals under $100m reached $3bn in 2024, a 47% drop from the $5.7bn recorded in 2023 and a 50% decline from the $6bn raised in 2020.
Deals valued at $100m or more contributed $4bn in 2024, down 58% from the $9.7bn raised in 2023 and 36% lower than the $6.3bn raised in 2020.
The average deal size in 2024 increased to $21.8m, a notable rise of 18% from $18.5m in 2023 and 65% higher than $11.1m in 2020.
This represents the highest average deal value in the last five years, peaking in 2024, and suggests that while the total number of deals has dropped, investments have become more concentrated.
This growth in average deal size underscores a selective approach to funding, with investors prioritising fewer, higher-value deals in a conservative investment environment.
Zepz, a leading digital money transfer service, had secured one of the largest UK FinTech deals with a $267m funding round
The funding round was led by Accel, with participation from Leapfrog, TCV, and the International Financial Corporation, which pledged up to $20m.
The funding will drive Zepz’s expansion in its core African markets and beyond, as the company continues to address the fragmented remittance industry by offering cost-effective digital solutions that replace traditional cash transfers.
Having achieved full-year profitability in 2022, Zepz is leveraging its strong operational foundation to explore opportunities for further growth, including potential acquisitions of smaller firms.
Founded in 2010 with a mission to reduce the high transaction fees in cross-border money transfers, Zepz has grown into a global remittance powerhouse, supporting underserved communities during times of need and driving financial inclusion through its innovative platform.
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