Key FinTech investment stats in the DACH region in Q2 2023:
• Switzerland was the most active DACH country for FinTech deal activity with 33 transactions
• FinTech deal activity in the DACH region hit 64 deals, a 32% drop from Q2 2022
• FinTech investment in DACH companies reached $376m in the second quarter, a 56% drop YoY
The DACH region as a whole has seen a sizeable drop in Q2 2023 YoY with both deal activity and investment dropping. The number of FinTech deals in the DACH region declined by 32%, totalling 64 deals, compared to Q2 2022. Investment in DACH-based FinTech companies amounted to $376m, reflecting a year-on-year decrease of 56%.
IslamicCoin, a native currency of Haqq that focuses on empowering the Muslim community with a financial instrument for the digital age, had the largest FinTech deal in the DACH region during Q2 2023, raising $200m in their latest private equity round, led by ABO Digital. Islamic Coin, a digital money platform catering to the global Muslim community, has secured a significant funding round of $400 million. This funding surpasses prominent players in the crypto industry such as Circle, BlockFi, and Solana, making it one of the largest funding rounds in crypto history. Islamic Coin has garnered international recognition, including accolades like the Most Promising ESG Crypto at the Abu Dhabi Blockchain Awards. The partnership with ABO Digital will enable Islamic Coin to introduce its Shariah-compliant financial products to the ABO network of investors and access up to $200 million for future growth. ABO Digital CEO Amine Nedjai expressed excitement about collaborating with Islamic Coin and praised their ambitious project as a revolutionary force in the Shariah-compliant market.
Switzerland was the mot active DACH FinTech country with 44 deals, a 52% share of all deals in the region. Germany was second with 38 funding rounds completed, a 45% share of deals and Austria was third with two deals. Remarkably Switzerland has overtaken Germany as the most active FinTech country in the DACH region. This also places Switzerland as the third most active country in Europe behind the UK and France. The Blockchain & Crypto is bolstering Switzerland’s position and Zug, a Swiss city, is quickly establishing itself as a FinTech hub in the region. Zug was also notably the birthplace of the popular blockchain Ethereum.
RegTech was the most active FinTech sector in the DACH region during Q2 2023 with 14 deals, a 21% share of deals. InsurTech was the second most active FinTech subsector with 11 deals and Blockchain & Crypto was third with 10 deals.
