2021年Q3金融科技报告（英）-24页_1mb

Q3 2021 Fintech Sector Summary

Core Content

The Q3 2021 Fintech sector update highlights significant trends, investment activity, and valuation changes across various segments, including BNPL, mobile money, impact investing, and M&A activity.

Main Trends

1. The Blurring Line Between Credit Cards and BNPL

• The COVID-19 pandemic has accelerated the shift away from traditional credit cards.
• Buy Now, Pay Later (BNPL) has become a preferred payment method, especially among younger consumers.
• BNPL platforms offer convenience and ease of use, encouraging higher spending and reducing cart abandonment for retailers.
• Klarna and AfterPay are notable BNPL leaders, with the latter being acquired by Square for $29bn.
• BNPL spending is expected to reach $995bn in five years, nearly four times the current level.
• Mastercard has also entered the BNPL market, signaling its threat to credit card dominance.

2. Mobile Money Dominates Fintech Investment in Africa

• Fintech investments in Africa are growing at record pace, improving financial inclusion.
• The region has a young population and high mobile penetration, making it a prime market for digital financial services.
• e-commerce in Africa is expected to grow significantly, with mobile wallet payments set to account for over one-fifth of e-commerce spend by 2024.
• OPay, a Nigerian mobile payments platform, was valued at $2bn after raising $400m from SoftBank Vision Fund 2.
• Wave, a US and Senegal-based mobile money provider, raised $200m in Series A funding.
• Zip acquired Payflex, a South African BNPL provider, showing the potential for BNPL disruption in the region.

3. Impact Investing and Technology

• Impact investing is moving mainstream, with significant investment already in motion and expected to grow.
• Technology plays a crucial role in meeting ESG expectations, with fintech platforms leveraging data to drive impact.
• Investment apps have a unique position in this space, enabling retail investors to make informed, impactful decisions.
• Circa5000 (formerly Tickr) and Clim8 Invest are examples of fintech platforms raising funds to support climate-focused investments.
• Clim8 Invest raised £12m, including £2.85m from its third funding round and £2m from institutional investors.

Key Transactions

M&A Activity

• Goldman Sachs acquired Greensky for $2.2bn to bolster its Marcus brand.
• PayPal acquired Paidy for $2.7bn.
• Square acquired AfterPay for $29bn, a major move in the BNPL space.
• PayU acquired BillDesk for $4.7bn.
• Revolut raised $800m in a funding round led by SoftBank and TigerGlobal.
• Klarna acquired STOCARD, a loyalty cards wallet app.
• Rapyd acquired Valitor, a payment processing service.

Fundraising Activity

• Revolut raised $800m.
• Chime raised $750m.
• Branch raised $567m.
• OPay raised $400m from SoftBank.
• ZestMoney raised $500m led by Zip.
• Scalapay raised $155m at a $700m valuation from TigerGlobal.
• Zilch raised $110m led by Goldman Sachs Asset Management & DMG Ventures.
• monese raised $90m.
• TRUELAYER raised $130m from TigerGlobal.
• sendwave raised $200m from Founders Fund, Sequoia Heritage, and Stripe.

Valuation and Performance

Valuation Trends

• Valuations for the fintech index stabilised at a new level during Q3 2021.
• The fintech index traded at 21.9x trailing 12-month revenues and 18.1x next 12-month revenues as of 30 September 2021.
• Valuation multiples have increased compared to the 2-year average.

Performance Metrics

• Online lenders showed a 213.2% 2-year growth.
• Nasdaq had a 80.6% 2-year growth.
• Payments sector saw a 69.9% 2-year growth.
• HR & Payroll had a 65.6% 2-year growth.
• Financial Data & Analytics showed 63.2% 2-year growth.
• Banking Technology had a 3.7% 2-year growth.

Public Comparables

• PayPal had a $305.755bn market cap and $303.05bn EV.
• Shopify had a $169.659bn market cap and $162.98bn EV.
• Square had a $110.393bn market cap and $110.976bn EV.
• Adyen had a $85.408bn market cap and $81.679bn EV.
• FIS had a $75.161bn market cap and $93.464bn EV.
• Fiserv had a $71.849bn market cap and $92.851bn EV.
• Affirm had a $32.388bn market cap and $32.904bn EV.
• Pageseguro had a $17.027bn market cap and $16.801bn EV.
• Dlocal had a $15.981bn market cap and $15.718bn EV.
• Wise had a $14.597bn market cap and $9.2bn EV.
• Marqeta had a $11.931bn market cap and $10.264bn EV.

Key Players and Investments

• GP Bullhound highlighted several investment and acquisition activities, including otonova, 21grams, unifiedpost, ratepay, Klarna, Zobito, meniga, monese, and lendinvest.
• TigerGlobal was a major investor in several fintech startups, including Scalapay, Mono, and Zilch.
• Sequoia Capital invested in Wave and ZestMoney.
• Founders Fund and Ribbit Capital were involved in Wave and sendwave funding.
• SoftBank invested in OPay and Zobito.
• Goldman Sachs was a key player in Greensky and Zilch acquisitions.
• BainCapital and PRIMEST VENTURES were involved in Zobito and Klarna investments.
• General Atlantic invested in 21grams.
• Target Partners invested in Zobito.
• Augmentum IAG International invested in monese.

Summary of Key Insights

• BNPL is becoming a dominant payment method, with significant M&A and fundraising activity.
• Africa presents a large and untapped opportunity for fintech investment, driven by high mobile penetration and a young, digitally native population.
• Impact investing is gaining traction, with fintech platforms playing a crucial role in leveraging technology and data to meet ESG expectations.
• Fintech fundraising reached record levels in Q3 2021, with major rounds led by prominent investors.
• Valuations in the fintech sector have stabilised at a new level, showing increased confidence in the industry.
• Major players like PayPal, Shopify, and Square continue to dominate the market with significant M&A and fundraising activities.
• The fintech sector is showing robust performance despite inflation fears, with strong growth in various segments.