Australia’s investments were mainly in the growing digital banking sector. Judo Bank and Xinja recorded the highest funding amounting to $176 million during the quarter. In the future, open banking developments in Australia may continue to spur investor interest in digital banks. Elsewhere, India’s move to crack down on foreign investors impacted funding which dropped by 38% to $339 million compared to Q1 2020. Before Q2 results, India was the focus of fintech funding in Asia. China also witnessed a massive decline of 80% to $41 million. Despite funding rebounding during Q2, there was less activity for deals across the region remaining constant at 107 transactions. On a quarter-over-quarter (QoQ) basis funding increased by 17% to $9.3B in Q2’20. Notably, monthly deal activity hit a new low of 127 deals in April before picking up in June with 141 deals.
Fintech mega-rounds hit new quarterly high
There was a considerable activity for the Fintech mega-rounds with the report noting that: The report predicts a bright future for the Southeast Asia region as activities shift due to the escalating tension between China and India.
