Bengaluru among top five global cities for fintech VC investment despite pandemic
Mumbai, 30th October 2020: As coronavirus drives accelerated adoption of fintech products and services, investors are continuing to pump money into fintech companies in the UK and India.
According to latest data from London & Partners and Dealroom.co, London’s fintech sector has attracted $3.6bn in VC investment between January and September 2020, coming in second globally. Bengaluru takes the fifth spot in the global ranking with $900m in fintech VC investment, while New Delhi comes in eleventh with $400m invested so far this year.1
Demonstrating confidence in the fintech sector from investors, the UK capital takes the top spot for deal count, with 169 deals so far this year, while Bengaluru comes in fifth globally with 35 deals. San Francisco follows London with 107 deals andParis is second in Europe with 40 deals.
Indian fintechs have attracted $2bn in VC investment between January and September 2020, coming in third globally behind the US with $16.6 billion and UK at $3.9 billion. Bengaluru and New Delhi are leading fintech hubs in India, with several companies expanding their operations to London in the last few years.
Debasmit Mohanty, CEO & Founder, StratLytics Consulting said: “When we were looking to expand into the European market, London was a natural choice for us. In London you have access to global financial markets, clients, world-class talent and supportive regulators all in one place. We opened our first European office in London this year, with the help of London & Partners, and we have joined a thriving and supportive tech ecosystem.”
While businesses around the world continue to tackle the impacts of coronavirus, London’s fintech sector appears to be weathering the storm. Fintech remains one of London’s largest and best performing sectors, accounting for 44% of all VC investment into London’s tech companies so far this year.
Although global investment flows around the world are below last year’s levels, London’s fintechs have already topped 2018 VC investment total of $2.3bn. What’s more, in the first half of 2020, London fintechs claimed 57% of European VC capital into fintech companies.
Hemin Bharucha, Chief Representative India, London & Partners said: “London is one of the most attractive cities in the world to scale a fintech company and these new investment figures demonstrate continued confidence in London as a global fintech hub. The UK capital is a natural home for fintech because it combines the power of global financial markets with a deep tech talent pool, supportive regulation and an early-adopting customer base.”