The first half of 2024 demonstrated resilience and adaptability within Singapore’s fintech market, with significant growth in deal activity. This period saw Singapore fintechs raising US$522.89 million, reflecting a 34 percent decrease from US$790.10 million across 98 deals in H2’23. On the global stage, fintech investment fell from US$62.3 billion across 2,287 deals in H2’23 to US$51.9 billion across 2,255 deals in H1’24.
Cryptocurrency & Blockchain, Payments and AI Segments Dominate Deal Activity
In H1’24, Singapore’s fintech market saw significant activity in cryptocurrency, blockchain, payments, and AI segments. Cryptocurrency and blockchain investments reached US$211.90 million across 72 deals, marking a 22 percent increase from H2’23, driven by Singapore’s focus on strengthening risk management for digital asset tokenisation. The payments segment, while securing the second-highest investment with US$80.20 million across 10 deals, experienced a sharp 78 percent decline compared to the previous half-year, with notable activity including a US$50 million venture capital raise by B2B payments platform Nium.
AI funding, after a surge in H2’23, stabilised with investments dropping to US$65.62 million across 10 deals, down from US$333.13 million. The AI segment’s complex technologies and regulatory scrutiny have slowed the deal-making process as companies navigate new compliance requirements and economic uncertainties. Despite the challenges, these segments remain dominant in Singapore’s fintech landscape, reflecting both cautious investment approaches and the country’s strategic initiatives in emerging technologies.
Optimism for 2025 Amid Fluctuating Fintech Investments
Over the past five years, the fintech sector in Singapore has experienced notable fluctuations. The years leading up to the pandemic saw steady growth, which was followed by a post-pandemic surge, peaking at US$3.27 billion in H1’22. However, recent economic headwinds have tempered this momentum, leading to smaller deal sizes and slower large-scale funding. Despite this, there is optimism for 2025, with expectations of a backlog of fintech deals potentially rejuvenating the investment landscape.
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