Global Fintech Funding Drops 16% in Q1 2024

Global fintech funding experienced a significant decline in the first quarter of 2024, falling by 16% to $7.3 billion from $8.7 billion in Q3 2023, according to a report by CB Insights. This marks the largest quarterly drop in fintech funding since 2017.

Despite the overall decline in funding, the number of deals increased by 15%, with 904 deals recorded in Q1 2024 compared to 724 in Q4 2023. This suggests that while investors remain active, they are focusing on smaller deals. The average deal size decreased by 18%, from $13.6 million in 2023 to $11.1 million in 2024.

“A dearth of blockbuster deals is driving the decline: In Q1 2024, there were just 12 mega-rounds (deals worth $100 million+), representing 26% of total funding — the lowest share since Q2 2023,” the report noted. However, UK-based challenger bank Monzo raised $431 million in a Series I round, the largest fintech deal of the quarter.

Major Funding Highlights

Monzo (UK): Raised $431 million in a Series I round led by Capital G, with support from Tencent and Google Ventures. This deal contributed 5.1% to the total fintech funding for the quarter and valued Monzo at $5.1 billion.

Flexport (USA): Secured $260 million in convertible notes from Shopify, accounting for 3.6% of the total funding.

Bilt Rewards (USA): Raised $200 million in a Series C round led by General Catalyst, contributing 2.8% to the global total and valuing the company at $3.1 billion.

Kore.ai (USA): Obtained $150 million in a Series D round led by FTV Capital, making up 2.1% of the quarterly total.

Flagstone (UK): Raised $139 million in a private equity round financed by Estancia Capital Partners, contributing 1.9% to the total funding.

Mews (Netherlands): Secured $110 million in a Series D round led by Kinnevik and Goldman Sachs Asset Management, contributing 1.5% to the total and valuing the company at $1.2 billion.

Solaris (Germany): Raised $104 million in a Series F round led by SBI Group, contributing 1.4% to the quarterly total.

Other notable deals included $100 million in equity funding raised by Nigeria’s Moove, the Netherlands’ DataSnipper, and the USA’s FundGuard and Watershed, as well as Hong Kong’s HashKey.