Key European FinTech investment stats for 2024:
- European FinTech deal activity dropped by 63% YoY in 2024
- UK, France, and Germany continued to dominate European FinTech deals cementing their places as the top three countries in the region
- Zepz, a London-based leading digital money transfer service, secured one of the largest European FinTech deals with a $267m funding round
European FinTech deal activity dropped by 63% YoY in 2024
The European FinTech market saw a drastic drop in funding and deal activity in 2024, reflecting a broader slowdown in investor appetite for the sector.
Total funding fell to $18.37bn, marking a sharp 47% drop from the $34.58bn raised in 2023.
Deal activity followed a similar trend, with 1,506 transactions completed in 2024, down 63% from the 4,030 deals recorded in the previous year.
The decline in both metrics underscores the challenging environment for FinTech companies, as macroeconomic pressures and shifting investment priorities have led to reduced capital inflows across the sector.
UK, France, and Germany continued to dominate European FinTech deals cementing their places as the top three countries in the region
The United Kingdom remained the most active FinTech market in Europe, accounting for 466 deals (31% share) in 2024, although this represented a steep 62% decline from the 1,236 deals recorded in 2023.
France followed with 180 deals (12% share), down 61% from 460 deals in the prior year.
Germany remained in third place with 158 deals (10% share), experiencing a 63% drop from the 422 deals recorded in 2023.
Despite the overall contraction in activity, these three countries maintained their leadership in the European FinTech landscape, highlighting their resilience in a challenging funding environment.
Zepz, a London-based leading digital money transfer service, secured one of the largest European 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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