Key Canadian FinTech investment stats in Q1 2025:
- Canadian FinTech investments dropped by 39% YoY in Q1
- Average deal value was $11.1m as investors grew cautious
- LemFi, a FinTech platform revolutionising access to financial services for immigrant communities, secured one of Canada’s largest FinTech deals of the quarter with a $53m Series B funding round
Canadian FinTech investments dropped by 39% YoY in Q1
In Q1 2025, the Canadian FinTech sector recorded 20 deals, marking a 62% decrease from the 52 deals completed in Q1 2024.
Despite this significant YoY drop, deal activity did see a modest 11% increase compared to Q4 2024, when only 18 deals were completed.
While deal volume remains far below early 2024 levels, the slight uptick from the previous quarter suggests a potential stabilisation in investor interest.
Funding in Q1 2025 stood at $221m, a 39% decline from the $360m raised in Q1 2024 and a sharp 79% drop compared to the $1.1bn raised in Q4 2024.
However, it is important to note that Q4 2024 was heavily skewed by the three largest deals of the quarter, which together accounted for $875m of total funding.
Excluding those three transactions, adjusted funding for Q4 2024 was just $180m—placing Q1 2025 slightly ahead, highlighting a more resilient funding base when mega-deals are removed from the picture.
Average deal value was $11.1m as investors grew cautious
The average deal size in Q1 2025 was $11.1m, compared to $6.9m in Q1 2024 and significantly lower than the $58.6m average in Q4 2024.
However, if the three largest Q4 deals are excluded, the adjusted average deal size for that quarter drops to just $10m.
This indicates that while headline averages may appear volatile due to outsized transactions, underlying deal values are showing signs of steadier capital deployment.
Investors appear to be returning to smaller but deliberate investments, reflecting a more measured and selective funding environment amid broader macroeconomic caution.
LemFi, a FinTech platform revolutionising access to financial services for immigrant communities, secured one of Canada’s largest FinTech deals of the quarter with a $53m Series B funding round
The funding round led by Highland Europe, brought LemFi’s total funding to $85m, it also saw continued support from existing investors including Left Lane Capital, Palm Drive Capital, Endeavor Catalyst and Y-Combinator.
Founded in 2021, LemFi enables users to open multi-currency accounts and make low-cost, reliable global transfers, serving over one million users across Europe and North America with a focus on remittances to markets like India, Nigeria, Kenya and Pakistan.
With monthly transactions surpassing $1bn and growing 30% month-on-month, the platform is now expanding into Asia, including China, as part of its next growth phase.
The new capital will support LemFi’s strategic priorities: deepening its financial product suite, expanding its licensing and partnerships network, and scaling its global workforce to position itself as a comprehensive financial hub for immigrant communities worldwide.
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