In 2014, the majority of FinTech deals in Asia involved Chinese companies with 35.8% of deal share. However, since 2015 the dominating country in the region has been India with an average deal share of 31.9% over the period.
Share of deal activity in China decreased by 13.8 percentage points (pp) from 2014 to H1 2019, with investors looking for opportunities in other parts of the region. Additionally, trade tensions between China and the US continue to impact investor choices in the area, dampening investor appetite and resulting in investment in other parts of the region.
India was brought into the national FinTech spotlight in 2017 when investment surged to over $6.8bn, more than tripling the previous record. This growth was driven by the late-2016 demonetisation drive by the Indian government where FinTech platforms in India significantly increased their consumer base.
In Singapore, deal activity has increased over the period from 14.2% in 2014 to 22.0% in H1 2019, now equalling China’s share. This growth is due to government help, tax benefits and Singapore’s easy access to regional markets which makes Singapore a better choice for investors than rival hubs.
Share of Asian deal activity is moving from China to India and Singapore