Global capital investment in fintech nearly halved in 2023, totaling $51 billion, with the UK experiencing an even sharper decline, according to Innovate Finance data.
The total global capital invested in fintech dropped by 48% compared to 2022, when investments amounted to $99 billion. This funding was distributed across 3,973 deals, a significant reduction from the 6,397 deals in 2022.
These statistics align with a recent report from the Indian analyst group Tracxn, highlighting the impact of inflation, rising interest rates, geopolitical tensions, and other macroeconomic factors on valuations and deal activity.
The United States led the investment landscape in 2023, attracting over $24 billion across 1,530 deals, although this figure reflects a 44% decrease from the prior year. Other key players included India with $2.5 billion, Singapore with $2.2 billion, and China with $1.8 billion.
The UK secured second place, garnering $5.1 billion through 592 deals—more than the total investment from the next 28 European countries combined—though this represents a 65% decline from 2022.
Notably, the value of the top five largest deals globally in 2023 exceeded $9 billion, constituting 19% of total fintech investment. Stripe received the largest infusion, amounting to $6.9 billion, followed by Rapyd, Xpansiv, BharatPe, and Ledger.
Janine Hirt, CEO of Innovate Finance, commented, “The data demonstrates a clear opportunity for UK fintechs to strengthen ties with rapidly growing markets in Asia, many of which entered the global Top 10 for the first time and secured more combined investment than their European counterparts. The UK’s mature fintech sector is well positioned to foster stronger collaboration with the region and create new commercial and scaling opportunities.”