2021年Q2金融科技报告（英）-22页_1mb

Q2 2021 Fintech Sector Summary

Core Content

The Q2 2021 Fintech sector update highlights a period of significant growth and transformation across the European and global fintech landscapes. Key themes include increased investment activity, the rise of RegTech solutions, and the ongoing digital onboarding trend, driven by the expansion of the digital economy and heightened financial crime risks.

Main Trends and Insights

• Digital Transformation and Fintech Growth: The shift to digital platforms, accelerated by the pandemic, has driven the need for innovative fintech solutions that offer faster, cheaper, and more efficient services.

• Rise of Financial Crime and RegTech Demand: As more transactions move online, fraud has become more sophisticated. The proliferation of stolen credentials has created a pressing need for RegTech solutions that can verify identities effectively. A Gartner survey indicates that by 2022, 80% of organizations will use document-centric identity proofing, and 75% prefer a single vendor solution.

• European Fintech Mega-Rounds: Q2 2021 saw a dramatic increase in the number of $200m+ deals, with 15 companies raising such amounts, compared to 4 in 2019 and 7 in 2020. This reflects the growing maturity of the European fintech ecosystem and increased global investor interest.

• M&A Activity: Traditional financial services companies are acquiring fintech startups, indicating a strategic move towards digital integration. Examples include Visa's acquisition of Tink, JPMorgan Chase's acquisition of Nutmeg, and DNB's acquisition of Sbanken.

• Record Fundraising: Q2 2021 saw record fundraising activity, reaching $36.6bn, up 35% from the previous quarter. This was driven by large mega-rounds from companies like NuBank, Trade Republic, and Mollie.

• Strong Valuation Trends: Despite market volatility in May, the fintech index remained strong, trading at 19.7x trailing 12-month revenues and 18.5x next 12-month revenues, both above the 3-year average. Companies like PayPal and Shopify led the valuation increase.

Key Investments and Acquisitions

• 21grams acquired by unifiedpost
• ratepay acquired by BainCapital
• Klarna invested by SEQUOIA and TARGETPARTNERS
• motif acquired by meniga
• monese invested by Augmentum IAG INTERTA and KINNEVI
• lendinvest invested by GP.Bullhound and atomico
• wefox raised $650m in a highly competitive 4-week process
• Trade Republic invested by SEQUOIA
• Klarna raised $1bn in a mega-round
• Mollie raised $806m
• Payoneer listed at $9bn valuation
• MARQETA raised $1.2bn
• d-local raised $618m
• SoFi listed at $7.45bn valuation
• allfunds listed at €1.9bn valuation
• Alkami listed at $180m valuation
• Linklogis listed at $1.07bn valuation
• Paysafe listed at $9bn valuation
• IZICAP processes 1.8bn payment transactions annually, offering card-linked CRM and loyalty solutions to local merchants
• Kuda is a UK-based digital bank providing free banking and instant credit to Africans
• Revolut raised $33bn valuation
• ComplyAdvantage raised $20m
• Veriff raised $69m
• Feedzai raised $200m
• Jumbo raised $150m
• Wefox raised $650m
• Chainalysis raised $100m
• Zeta raised $250m
• Snapdocs raised $150m
• Shift raised $220m
• Fiserv raised $92.6m
• Adyen raised $71.2m
• Square raised $111.2m
• StoneCo raised $19.9m
• Pageseguro raised $18.2m
• Marqeta raised $15.2m
• Fawry raised $2.0m

Summary of M&A Activity

• Visa acquired Tink for $2.2bn
• JPMorgan Chase acquired Nutmeg for $990m
• DNB acquired Sbanken for $1.3bn
• globalpayments acquired Zego for $925m
• bill.com acquired Divvy for $2.5bn
• Nuvei acquired Simplex for $250m
• MOGO acquired m9ka for $51m
• Galaxy Digital acquired BitGo for $1.2bn
• Affirm acquired returnly for $300m
• R1 acquired visitpay for $300m

Valuation Benchmarks

Key Quotes

• Reda El Mejjad, Co-founder & CEO of Izicap: "We founded Izicap with the purpose of empowering local businesses with all the benefits of CRM & loyalty programmes - but without all the complications. We are giving SMEs the unique opportunity to turn card payment data into powerful & actionable business insights."

• Babs Ogundeyi, Co-founder & CEO of Kuda: "Most Africans are overcharged for basic banking services, and that's even when they can access those services. We started Kuda to give such people, whether on the continent or in the diaspora, a better alternative."

Conclusion

The Q2 2021 Fintech sector witnessed a surge in both investment and M&A activity, driven by the increasing digital transformation and the need for robust financial crime solutions. European fintech companies have gained significant traction, with mega-rounds and public market success highlighting the sector's maturity and attractiveness to global investors. The trend towards consolidation and the preference for single vendor solutions are expected to continue, shaping the future of the fintech landscape.