KPMG's Pulse of Fintech H1'2023
1 August 2023 – Global fintech funding falls to US$52.4bn, but it’s not all bad news
The first six months of 2023 were difficult for the fintech market globally, with both total funding and the number of deals dropping, from US$63.2 billion across 2,885 deals in H2’22 to US$52.4 billion in across 2,153 deals in H1’23. The cloud of uncertainty permeating the market continued to wear on investors, driven by factors including global macroeconomic concerns (high inflation and rising interest rates), geopolitical tensions (the ongoing conflict between Russia and the Ukraine), and tech sector challenges (depressed valuations and a continued lack of exits). The collapse of several US banks early in 2023 likely also kept many investors in wait and see mode during H1’23.
But not all the news was negative in H1’23. According to the H1’23 edition of KPMG’s Pulse of Fintech, a number of sectors attracted robust funding during the first half of 2023. Supply chain and logistics-focused fintechs attracted US$8.2 billion in funding in H1’23—well above the space’s 2019 annual record of US$5.5 billion. Green fintech also had robust interest, with US$1.7 billion of funding during H1’23— already slightly ahead of its 2022 results (US$1.5 billion).