Mobile Fintech Surges in Global Funding Boom (June 2, 2015)
Fintech funding is booming globally and within the overall sector, mobile fintech is getting the most money. More than $1.1 billion poured into fintech on a global basis through 58 different financings during Q1 2015, according to new data from the New York-based venture capital data firm CB Insights. Mobile fintech funding alone reached $372 million during the quarter, up 238 percent compared with the same quarter a year earlier, the firm said.
Venture capital money for mobile-focused fintech firms in Asia ranked high among significant deals during the quarter, including India’s One97 Communications, whose Paytm is the nation’s largest m-commerce platform. Paytm raised $575 million in two funding rounds during the first quarter, bringing the company’s valuation to more than $1.8 billion. China-based Enniu Internet Technology, which makes u51, a mobile credit card management and analytics platform, raised $50 million. And MobiKwik, an India-based mobile wallet company, raised $25 million.
During the last 12 months, about $14 billion has flowed into fintech startups globally, and the biggest areas of investment are payments, personal finance management, lending and bitcoin. And U.S.-based m-POS pioneer Square, now valued at $6 billion, scored highest among fintech firms in overall health and momentum, according to CB Insights.
Capitalizing on the demand for promising fintech concepts, Australia’s H2 Ventures, a new fintech digital design and investment firm, recently announced plans to raise $10 million for an accelerator program to drive development of 100 early stage fintech startups between now and 2018, drawing from applicants worldwide. H2 will provide qualifying teams with $100,000 each, in exchange for a 10 percent stake in the company. Each participating team, led by a few entrepreneurs, has six months to launch a viable concept, with the goal of raising a Series A round of capital within a year.