SINGAPORE – Fintech funding in Asean fell 36 per cent to around US$835 million (S$1 billion) in the first nine months of 2025 from the same period a year earlier, while the number of deals plunged 60 per cent year on year to 53.
However, the region saw the average deal size jump 42 per cent to US$21.4 million in the nine months.
This signals that fintech investors are putting their money in companies that have demonstrated a clear pathway to profitability, UOB, PwC Singapore and the Singapore Fintech Association said in a joint report on Nov 13.
“As investors de-risk amid an uncertain macro environment, their focus continues to shift from early-stage fintech firms chasing rapid growth to those demonstrating profitability, scalability and sustainability,” they said.
In the statement, Ms Holly Fang, president of the Singapore Fintech Association, said the shift in focus points to the maturation of the fintech ecosystem.
“The sector’s focus on sustainable growth and profitability marks an important step in the maturation of the fintech ecosystem, where firms are being tested on their ability to sustain innovation amid an increasingly volatile and uncertain environment,” she said.
Of the total funding, 67 per cent went to mature, late-stage fintech firms. This was a 24 percentage point increase year on year.
Ms Janet Young, UOB’s group head for channels and digitalisation as well as strategic communications and brand, said the rise in average deal size and strong performance of late-stage companies underscore investor confidence in the region’s long-term potential as a thriving digital economy.
Ms Wong Wanyi, fintech leader at PwC Singapore, said: “Despite slower funding and lower valuations, investor confidence persists, fuelled by sophisticated fintechs that have successfully adapted to market shifts, putting them ahead of the curve.
“Capital is expected to increasingly flow towards ventures with strong value propositions and execution excellence.”
Singapore continues to be the region’s fintech hub, attracting 87 per cent of total funding in the first nine months of 2025, amounting to more than US$725 million. This marks a significant improvement from a 57 per cent funding share in the same period a year ago.
Fintechs in the other key Asean markets faced a more challenging fund-raising environment, the report noted.
Indonesia, trailing behind Singapore, saw its share of funding fall from 20 per cent in the first nine months of 2024 to 4 per cent in the same period a year on.
Malaysia, Thailand and Vietnam collectively accounted for less than 10 per cent of total funding in the first nine months of 2025 and saw noticeably fewer deals.