Payments and cryptocurrency bright spots in 2024 as South-east Asia’s fintech funding falls 23%: Tracxn

PAYMENTS and cryptocurrency had been bright spots for 2024 fintech funding in South-east Asia, reporting progress as total funding fell based on a report by information platform Tracxn.

Fintech funding in the area fell 23 per cent to US$1.6 billion in 2024 from US$2.1 billion in 2023. This was a continued fall from US$6.3 billion in 2022.

Virtually all sectors noticed a fall in funding, besides just a few such as funds, cryptocurrency and banking tech. Payments raised US$366 million in 2024, a 53 per cent improve from 2023. Cryptocurrency raised US$325 million, a 20 per cent improve from 2023. Banking tech raised US$265 million in 2024, a 63 per cent improve from 2023.

Regardless of challenges such as rising rates of interest, the sector’s modern spirit continued to shine, with segments such as funds and cryptocurrencies reaching important progress,” stated Neha Singh, co-founder and CEO of Tracxn.

All levels of funding in fintech noticed declines, with the late stage investments taking the largest hit, falling 31 per cent to US$694 million in 2024 from US$1 billion in 2023. This was adopted by early stage investments, falling 16 per cent to US$750 million in 2024 from US$893 million in 2023. The decline on the seed was the bottom at 6.4 per cent to US$190 million in 2024 from US$203 million in 2023.

Acquisitions in South-east Asia rose marginally, from 26 in 2023 to 27 in 2024, however no fintech firm has gone public final yr in comparison with one in 2023. Singapore led funding for 2024, with fintech firms in town state elevating US$955 million, adopted by Jakarta with US$242 million.