German FinTech deal activity plunged by 63% in 2024 as investors focused on larger deals

German FinTech deals 2024

Key German FinTech investment stats in 2024:

  • German FinTech deal activity plunged by 63% YoY
  • Average deal value more than doubled to $22.1m as investors backed fewer but larger deals in 2024
  • osapiens, a leading ESG platform specialising in compliance and sustainability reporting solutions, secured the biggest German FinTech deal of the year with a $120m Series B funding round

German FinTech deal activity plunged by 63% YoY

In 2024, the German FinTech sector experienced a sharp decline in deal activity despite maintaining a relatively stable funding level.

A total of 101 deals were recorded in 2024, representing a 63% drop from the 271 funding rounds completed in 2023.

This marks the lowest number of deals in the past five years, indicating a compelling pullback in investment appetite, with investors exercising greater caution in deploying capital.

Total funding in 2024 reached $2.2bn, reflecting only a slight 12% decrease from the $2.5bn raised in 2023.

While the overall investment volume remained relatively resilient, the steep drop in deal count suggests that investors focused on fewer but larger deals, favouring established FinTech firms over early-stage startups.

Average deal value more than doubled to $22.1m as investors backed fewer but larger deals in 2024

The average FinTech deal value in Germany in 2024 surged to $22.1m, which was over a 2x increase from the $9.4m average in 2023 and a 2.5x rise from the $8.9m average in 2020.

This substantial increase highlights a trend toward larger, more strategic investments, with capital being directed toward well-established players with proven business models.

As economic uncertainties and regulatory pressures continue to shape the market, German FinTech firms may face heightened scrutiny from investors seeking sustainable and scalable growth opportunities.

osapiens, a leading ESG platform specialising in compliance and sustainability reporting solutions, secured the biggest German FinTech deal of the year with a $120m Series B funding round

The funding round was led by Growth Equity at Goldman Sachs Alternatives.

This investment, which follows a $27m Series A led by Armira Growth in 2023, will accelerate osapiens’ international expansion and enhance its AI-powered osapiens HUB platform.

Designed to streamline compliance with international ESG regulations such as the Corporate Sustainability Reporting Directive (CSRD) and the European Union Deforestation-free Regulation (EUDR), the platform enables businesses to manage risk, automate processes, and drive operational efficiency.

Since its founding in Mannheim in 2018, osapiens has grown rapidly, supporting over 1,300 customers globally, including industry leaders like Bosch and Coca-Cola North America. With a 473% increase in its customer base in 2023, the company is well-positioned to scale further, leveraging its innovative technology to enhance business resilience and drive sustainable impact worldwide.

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