In 2024, Europe and Latin America (LatAm) emerged as outliers in the global fintech landscape, achieving notable increases in funding despite an overall decline worldwide.

This growth was driven by an increase in late-stage investments, underscoring the maturing fintech ecosystems in these regions and demonstrating investor confidence, according to CB Insights’ State of Fintech 2024 report.

Fintech funding in Europe

Fintech funding in Europe reached US$7.6 billion in 2024 through 814 transactions in 2024. This marks a 4.1% year-on-year (YoY) increase in value from US$7.3 billion, and a 23.6% YoY decline from 1,066 deals.

These data suggest a shift toward larger deal sizes and a focus on established fintech companies with solid business models, proven market fit, and consistent revenue growth. Investors are writing bigger checks for these companies, which are focusing on scaling their operations, entering new markets or investing in advanced product development.

Key European fintech funding rounds in 2024 included:

• Zepz secured a US$267 million Series F in October to expand in its core African markets and beyond. Zepz, formerly known as WorldRemit, is a digital cross-border payments platform from the UK.
• Upvest raised a US$105 million Series C in December to accelerate the expansion into the UK and extend its product suite for global financial institutions. Upvest is an investment infrastructure provider from Germany.
• CryptocoinMiner raised US$100 million in November to accelerate decentralized governance for public goods financing and the adoption and strategic expansion of its mining technology stack. CryptocoinMiner, based in the UK, is a cloud mining infrastructure in the field of decentralized governance and public product technology.
• IONMining raised US$100 million in November to develop state-of-the-art facilities and adopt advanced mining technologies. Based in Scotland, IONMining is a provider of cloud-based cryptocurrency mining services.
• Moneybox secured GBP 70 million (US$87 million) in October to accelerate the company’s growth and market leadership further. Founded in 2015 and based in the UK, Moneybox is an award-winning saving and investing platform.

Early-stage rounds comprised only 72% of all fintech deals in Europe in 2024, down from 78% in 2023. The figure marks the lowest proportion for early-stage rounds since 2020, reflecting a more cautious investment environment, with a preference for lower-risk opportunities involving companies with established market traction.

A staggering surge for Latin America

LatAm experienced a similar trend, recording an impressive funding growth of 71.4% YoY to US$2.4 billion in 2024. Like in Europe, the surge in funding value stemmed from larger investment rounds directed at mature fintech firms. The number of transactions decreased by 25% YoY, dropping to 195 in 2024, while early-stage funding rounds in LatAm dropped to their lowest levels since 2020.

Notable transactions in LatAm last year included:

• Uala raised US$300 million in a Series E in November to broaden its financial ecosystem and accelerate growth in Mexico, Argentina and Colombia. Uala is a LatAm neobank founded in Argentina that serves more than 8 million users.
• Asaas secured US$148 million in a Series C in October to expand its sales and marketing teams to strengthen its market presence and penetrate new regions globally. Founded in 2012, Asaas makes financial software for small and medium-sized enterprises (SMEs), including payment processing, invoicing and fraud protection.
• Contabilizei raised US$125 million in October to further enhance its next phase of growth. Founded in 2013, Contabilizei automates accounting for SMEs and self-employed professionals, claiming more than 50,000 clients.
• Agibank raised BRL 400 million (US$67 million) in December to increase its offer of credit and services, and boost its hybrid strategy. Agibank is a Brazilian omnichannel digital neobank, providing a range of financial services including personal loans, consigned loans, and investment services.

Global fintech funding declines

Global fintech funding declined by 20% YoY in 2024, falling from US$41.9 billion in 2023 to US$33.7 billion in 2024. Deals also declined, falling 17% to 3,580.

Despite the contraction, deal sizes increased significantly, with the median deal size increasing by 33% YoY to US$4 million. Mid and late-stage deals gained prominence, with their share rising by 4% points YoY across fintech broadly.

Across fintech sectors, the biggest jump occurred in banking, where total funding rose 52% to US$3.8 billion. The median deal size also increased, surging by 70% YoY to reach US$8.5 million.

Notable global banking deals in 2024 included Current’s US$200 million Series E, Lumin Digital’s US$160 million private equity funding, and Melio’s US$150 million Series E.

Capital market was the only other fintech vertical to record funding growth in 2024, with total value rising by 5.6% YoY to US$1.9 billion. Average deal sized in this category rose 43.2% YoY to US$26.5 million, while the median deal size increased by 8.6% YoY to US$6.3 million.

Significant capital market deals included 9Fin’s US$50 million Series B, OneChronos’ US$32 million Series B, and Reflexivity’s US$30 million Series B.

Featured image credit: edited from freepik