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India continues to lead in fintech investments, says S&P Global

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New Delhi/IBNS: India has continued to top fintech investments in the Asia-Pacific region with $1.93 billion raised across 66 deals in the July-September quarter, according to S&P Global Market Intelligence.

“We expect Southeast Asia-based fintechs to attract more capital as venture capitalists raise new money to double down on technology investments in the region,” said Celeste Goh, fintech analyst at S&P Global Market Intelligence, ET reported.

Till now, newly-listed APAC-based fintechs have garnered positive reactions from public markets, which may attract more fintech investments in the region.

In Southeast Asia, fintech investment has multiplied more than twice on a quarter-over-quarter basis to $1.90 billion with deal volume growing by 32 percent to 62 deals.

Payment fintechs top the funding list with seven out of the 10 largest transactions in the third quarter.

Business-to-business payment fintechs have been witnessing more investors’ attention of late in contrast to earlier dominance of consumer-facing payment apps.

“Investments in fintech companies based in Asia Pacific reached a new quarterly high due to continued growth in mega transactions with at least $100 million in size,” said Goh.

The growth in massive financing rounds has been accompanied by increased valuations, which may in part be driven by improved fundamentals as we see an accelerated shift toward digital channels, the report said.

However, it may also reflect private investors’ willingness to pay higher multiples due to their bullishness in the fintech sector, it added.