FinTech: UK Fintechs Pull Out All The Stops In Fundraising In H1 2021

July 12, 2021 | FinTech, News

UK fintechs have raised a record-breaking $5.7 billion in the first half of this year.

A report by trade body Innovate Finance says that the UK fintech sector raised more in just the first six months of 2021 than the whole of 2020. Enthusiastic investors pumped $5.7 billion into the sector in H1, 34% higher than the total amount of $4.3 billion received in all of 2020, and more than pre-pandemic levels. (Innovate Finance)

The 2021 collection, so far, is already ahead even of the record year set in 2019 ($4.6bn) by 26%.

The UK, the fintech hub of Europe

A record 13 mega-deals, i.e. those sized $100 million or more, were struck in H1 2021, versus just seven in the entire 2020.

“Fintech is one of the fastest-growing sectors of our economy and has a vital role to play in the UK’s economic and business recovery,” said Janine Hirt, chief executive of Innovate Finance. “To have secured record funding – in just six months – speaks to an enduring confidence in UK innovation, as well as our ability to build and scale world-class businesses.”

The numbers cement the UK’s pre-eminent position as Europe’s fintech capital and are creditable given they followed in the wake of 2020, the challenging year of the pandemic.

Big-ticket deals

The report highlighted the top deals of H1 2021 as follows.

Rank Company Deal size
1 Saltpay $500m
2 $450m
3 Starling Bank $376m
4 $300m
5 Rapyd $300m
6 Smart Pension $230m
7 ClearScore $200m
8 10x Future Technologies $187m
9 PPRO Financial $180m
10 DNA Payments $140m
11 PaySend $125m
12 $120
13 PayFit $107m

The report from Innovate Finance said UK fintech is now second only to the US (940 deals and $26.7bn) in terms of funds raised, and well ahead of the levels secured by Brazil (40 deals and $3bn), Germany (56 deals and $2.5bn) and India (132 deals and $2.2bn) during the same period.

“This analysis clearly demonstrates that the appetite among international investors to fund high-growth, innovative firms has never been greater, and is a testament to the UK’s position as a world leader in FinTech,” Hirt said.

Related Story:  Money Transfer App Wise Gets $11B Valuation In London Direct Listing

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