Hanoi (VNA) - Singapore's fintech sector amassed total funding of 2.2 billion USD in 2023, down 68% year-on-year, according to a report issued by accountancy giant KPMG on February 6.
Deal activity also saw a sharp drop, halving to 189 in 2023 from the previous year, the report said.
The dampened investor sentiment can be attributed to geopolitical conflicts, a high-interest rate environment, and a lackluster exit environment across regions, which prompted fintech investors to exercise caution and conserve their cash reserves throughout 2023, according to the report.
However, investors were optimistic about artificial intelligence (AI) performance. Total investment in Singapore's AI sector exceeded 480 million USD in 2023, including over 330 million USD in the second half, up 77% from the first six months.
Giant firms shared the view that while 2023 was a depressed year for the fintech market overall, Proptech, ESG fintech, and investors embraced AI-focused fintechs that helped particularly in the last six months./.
Deal activity also saw a sharp drop, halving to 189 in 2023 from the previous year, the report said.
The dampened investor sentiment can be attributed to geopolitical conflicts, a high-interest rate environment, and a lackluster exit environment across regions, which prompted fintech investors to exercise caution and conserve their cash reserves throughout 2023, according to the report.
However, investors were optimistic about artificial intelligence (AI) performance. Total investment in Singapore's AI sector exceeded 480 million USD in 2023, including over 330 million USD in the second half, up 77% from the first six months.
Giant firms shared the view that while 2023 was a depressed year for the fintech market overall, Proptech, ESG fintech, and investors embraced AI-focused fintechs that helped particularly in the last six months./.
VNA
