How Did Q1 2016 Go for FinTech Around the World?

April 6, 2016     By : Sofia

The LTP team has been actively following the investment activities in FinTech around the world for the last three months (January, February & March) and it’s time to sum up Q1 2016 with respect to FinTech.

In this overview, we have considered all financing cases excluding mergers and acquisitions. In total, in Q1 2016, $8.494 billion have been scattered across 367 funding deals and seven segments. A total of 590 investors, among which are large corporate players, have ensured the investments across these deals.

Investments in FinTech in Q1 2016 (by representation)

Investments in FinTech in Q1 2016 (by representation)

As expected by the results of the three months, banking/lending was the most attractive segment for investors as 28% of companies that raised funds are classified into the category. Payments/loyalty/e-commerce companies are holding the second place with 23% of the companies operating in the segment. And the third place belongs to securities/capital markets/wealth management companies (19%).

Companies that have substantially lower representation are from financial management solutions (13%), FinHCIT (9%), insurance (6%) and financial BPO (2%).

Investments in FinTech in Q1 2016 (by the funds raised)

Investments in FinTech in Q1 2016 (by the funds raised)

Even though banking/lending is represented by the largest number of companies, payments/loyalty/e-commerce companies have attracted almost half of the funds – 46% (almost $4 billion). Banking/lending companies have raised 30% of the funds (close to $2.6 billion). Substantially fewer funds have been raised by the rest of the companies ($2 billion in total).

Q1 2016

The most funded FinTech companies globally in Q1 2016

In absolute numbers, a significant part of the total funding in Q1 2016 went to just two segments: banking/lending and payments/loyalty/e-commerce. Disappointment can be expressed about the insurance segment, which—despite all the hype around InsurTech—attracted the least funding: $131 million. Combined with FinHCIT, there was a significant funding ($830 million), but better times for InsurTech are still ahead.

The most funded FinTech companies globally in Q1 2016

Meituan-Dianping, China’s largest group deals site, was the one that raised the most funds in Q1 2016. The Asian giant has attracted almost half of January’s total funding from Baillie Gifford, Capital Today, DST Global, Temasek and others.

Lufax is the largest online P2P marketplace in China that connects borrowers and investors. The company has raised $1.2 billion from COFCO Group and Guotai Junan Securities.

Oscar, one of the hottest InsurTech companies in the market, raised $400 million from Fidelity Investments, Founders Fund, General Catalyst Partners, Google Capital, Khosla VenturesLakestar and Thrive Capital.

WeLab is disrupting traditional credit services in Greater China and operates WeLend.hk in Hong Kong and Wolaidai, a mobile app, in China. The company has attracted $160 million from Guangdong Technology Financial Group, ING Group NV and Khazanah Nasional.

EDM Group is the UK’s leading provider of document digitization services with a nationwide network of specialist facilities. BlueBay Asset Management and Lloyds Banking Group have invested $145.1 million in the company.

BHG is the leading provider of financial solutions for healthcare professionals of all kinds. The company has attracted $114 million from the Pinnacle Bank.

Leading robo-advisory platform powering automated investmentsBetterment, has raised $100 million from Anthemis Group, Bessemer Venture Partners, Francisco Partners, Investment AB Kinnevik and Menlo Ventures.

Corporate investors

Corporate investors Q1 2016

Save

Stay Fresh on FinTech. Get our Daily Insights.

Sofia

Sofia is a contributing writer for LTP based in New York. She is a market research professional skilled in data analysis and visualization. Sofia has an extensive experience in consumer behavior studies and marketing analytics. She is passionate about disruptive startups with innovative business models that are having a powerful impact on the industries.

If you have any suggestions or questions for the author, please email us at follow@letstalkpayments.com