Hanoi (VNA) - Singapore's fintech sectoramassed total funding of 2.2 billion USD in 2023, down 68% year-on-year, accordingto a report issued by accountancy giant KPMG on February 6.
Deal activity also saw a sharp drop, halving to 189 in2023 from the previous year, the report said.
The dampened investor sentiment can be attributed togeopolitical conflicts, a high-interest rate environment, and a lackluster exitenvironment across regions, which prompted fintech investors to exercisecaution and conserve their cash reserves throughout 2023, according to thereport.
However, investors were optimistic about artificialintelligence (AI) performance. Total investment in Singapore's AI sectorexceeded 480 million USD in 2023, including over 330 million USD in the secondhalf, up 77% from the first six months.
Giant firms shared the view that while 2023 was adepressed year for the fintech market overall, Proptech, ESG fintech, andinvestors embraced AI-focused fintechs that helped particularly in the last sixmonths./.
Deal activity also saw a sharp drop, halving to 189 in2023 from the previous year, the report said.
The dampened investor sentiment can be attributed togeopolitical conflicts, a high-interest rate environment, and a lackluster exitenvironment across regions, which prompted fintech investors to exercisecaution and conserve their cash reserves throughout 2023, according to thereport.
However, investors were optimistic about artificialintelligence (AI) performance. Total investment in Singapore's AI sectorexceeded 480 million USD in 2023, including over 330 million USD in the secondhalf, up 77% from the first six months.
Giant firms shared the view that while 2023 was adepressed year for the fintech market overall, Proptech, ESG fintech, andinvestors embraced AI-focused fintechs that helped particularly in the last sixmonths./.
VNA
