The Global Fintech investment slide carried into May with both investment and deal activity down considerably from last year’s levels.
In May 2023, the number of Fintech deals amounted to 452, reflecting a significant 42% decline compared to May 2022, according to a report in Daily Fintech News.
Fintech deal activity also slightly dropped from April 2023 by 4%. In May this year, Fintech companies collectively raised $3.2 billion, indicating a substantial 65% YoY decrease.
bolttech, an international InsurTech, raised the largest deal in May 2023, raising $196m in their latest Series B extension funding round, led by Tokio Marine.
The fresh capital sets bolttech’s valuation at $1.6bn. bolttech will use the proceeds of Series B to further fuel its organic growth, including investments in proprietary technology, digital capabilities for business partners and end consumers as well as talent across bolttech’s 30+ markets.
In addition, the funds will be used to explore inorganic opportunities to accelerate international growth.
Rob Schimek, bolttech’s Group Chief Executive Officer, said, “Having just celebrated our third anniversary since our launch in 2020, we are incredibly proud of what we have achieved so far on our mission to build the world’s leading, technology-enabled insurance ecosystem.
“We are now one of the fastest growing InsurTechs in the world, enabling our partners to find new revenue streams, accelerate their digital transformation, and deepen their customer relationships.
“We thank all our Series B investors for their support, and we are excited to welcome our new investors, reputable leaders in their respective spaces, and look forward to strong partnerships that will fuel bolttech’s continued growth on our path to profitability in 2024.”
The USA was the most active FinTech country in May 2023 with 189 deals announced, a 42% share of all funding rounds. The UK was second with 31 deals, a 7% share of deals and India was third with 21 deals, a 5% share.
Total transaction value for Digital Payments is projected to reach $9.5tn, globally in 2023. Digital payments are expected to show an annual growth rate (CAGR 2023-2027) of 11.8% resulting in $14.8tn by 2027. China is on track to have the highest cumulated transaction value at $3.6tn in 2023.