Fintech funding raised by Indonesian startups plunged 94 per cent to just US$21 million in Q3 2023 from US$352 million in the same period last year, according to a Tracxn report. The fintech investments in Q3 2023 saw a 7 per cent drop from the previous quarter.
The sharp decline is due to the absence of late-stage investments in Q3 2023.
Seed-stage funding for the last quarter stood at US$1 million, a 94 per cent decrease from Q3 2022 and an 87 per cent drop from Q2 2023.
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No new fintech unicorns emerged in Indonesia in the past two quarters, as against one new unicorn in Q3 2022. Further, only one acquisition was recorded in Q3 2023.
Payments and investment tech were the only funded sectors in Q3 2023. Payments startups raised US$20 million, a 92 per cent drop from US$250 million in Q3 2022. On the other hand, investment tech companies secured US$1 million in Q3 2023, an 82 per cent decline from Q3 2022. There was no funding in Q2 2023 in this space.
East Ventures, Mandiri Capital Indonesia, and Alpha JWC Ventures were the most active investors in the Indonesia fintech landscape. Iterative was the most active investor in the seed stage during Q3 2023, while SWC and XCV were the most active early-stage investors.
Furthermore, the fintech sector in Indonesia is showing a downward trend, with only US$343 million raised in 2023, the lowest in the last five years.
In contrast, the Vietnamese fintech startups secured US$29 million in funding in Q3 2023, a 190 per cent growth from Q3 2022 and a massive jump of 2,800 per cent from US$1.1 million raised in Q2 2023. This is despite the lack of late-stage rounds in Q3 2023.
The fintech sector in Vietnam attracted early-stage investments worth US$28 million in Q3 2023, a growth of 1300 per cent when compared with US$2.5 million raised in Q3 2022. Seed-stage funding stood at US$1.1 million, similar to Q2 2023, but fell 86 per cent from US$8 million raised in Q3 2022.
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Alternative lending, banking tech, and insurance IT were the top-performing segments in the overall Vietnamese fintech sector in Q3 2023.
There was no activity in terms of IPOs and unicorns in Q3 2023. No local fintech companies went public in Q3 2023, and no new unicorns emerged. Further, only one acquisition occurred in Q3 2023, as against one in Q2 2023 and none in Q3 2022.
Y Combinator, Thinkzone, and Resolution Ventures were the most active institutional investors in Q3 2023.
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Copyright: hanoiphotography
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