Deal value of fintech deals in Singapore jumped 59% year-on-year in 2021 to $3.94 billion in venture capital, private equity and M&A deals, according to the KPMG Pulse report of FinTech for the second semester.
The number of deals for 2021 soared 37% year-on-year to a record 191 fintech deals, also 91% more than the number for 2019, consultancy and accounting firm KPMG International said in a Tuesday report. A press release.
KPMG attributed Singapore’s surge in deals to the city-state’s moves to boost the capital market, such as creating a Special Purpose Acquisition Company (SPAC) listing framework to attract business. fast-growing and unicorns interested in going public.
Grab’s SPAC offer
“A significant deal involved Singapore-based technology group Grab, which listed a US SPAC deal at $500m, resulting in a post-money valuation of $39.6bn that made it the ‘one of the top four fintech investments in Asia-Pacific in 2021,’ KPMG said.
Singapore posted record levels of investment in crypto and blockchain, with $1.48 billion from 82 deals in 2021, compared to $109.75 million from 26 deals in 2020, KPMG said.
“Cryptocurrencies and blockchain are expected to remain very hot investment areas in 2022, with more crypto businesses looking to regulators to provide clear business guidance to help foster and develop space. In Singapore, the surge in crypto and blockchain investments has also overtaken that of payments which have long held the top spot here,” Anton Ruddenklau, global fintech leader at KPMG International, said in the statement.
Rise in payment offers in Singapore
“Given how many banks are beginning to see key limitations inherent in their legacy architecture and technologies, we also expect increased investment in banking replacements that can help them rethink core banking,” Ruddenklau said.
Singapore recorded investments in payments of $628.41 million in 2021, lower than cryptocurrency and blockchain-related investments, but still up more than ninefold from $60 million in 2020 , said KPMG.
“Continued interest in areas such as ‘buy now, pay later’, integrated banking and solutions aligned with open banking have all helped keep the payments space robust,” KPMG said.
Rise in global investments
In Asia-Pacific, fintech funding reached $27.5 billion in 2021, KPMG said.
Global fintech funding in venture capital, private equity and M&A deals reached $210 billion from a record 5,684 deals in 2021, with the second half accounting for $101 billion of the total, according to the press release.