Global deals activity in the fintech space remained strong during the first half of 2020, despite the lack of mega-mergers and acquisitions. The uncertainty related to the coronavirus crisis kept investors focused on late-stage companies, who managed to raise significant funds from their venture capital, private equity, and merger and acquisition deals.
According to data presented by StockApps, the three largest fintech deals in the first half of 2020 hit over $5bn value.
Gojek`s $3bn Worth Funding Round the Biggest Fintech Deal in H1 2020
In March, Indonesia’s ride-hailing, delivery and mobile payments company, Gojek, raised $1.2bn in fresh capital and increased its ongoing Series F round total to $3bn, the biggest fintech deal in the first half of 2020, revealed the KPMG Pulse of Fintech H1 2020 data.
The startup, which launched an app for hailing motorbike taxis in Jakarta five years ago, today offers a variety of other on-demand services, including medicine delivery and house cleaning. Gojek, whose backers include high-profile firms like Tencent Holdings Ltd., Google, Temasek Holdings Pte, Facebook, PayPal, and Visa, said it would use the capital to expand its operations, despite the turbulence caused by the COVID-19 outbreak.
In June, Open Lending and Nebula Acquisition Corporation completed their reverse merger deal, the second-largest fintech deal in the first half of 2020. The Austin-based provider of automated lending services to financial institutions used a special purpose acquisition company sponsored by True Wind Capital, L.P., to avoid the traditional IPO path and go public with a valuation of $1.3bn.
The Yahoo Finance data revealed the merged company’s market cap, renamed to Open Lending Corporation (NASDAQ: LPRO), jumped by 85% in the last three months, growing from $1.39bn in June to $2.58bn in September.
KPMG data show Stripe`s latest funding round represents the third-largest fintech deal between January and June. In April, the San Francisco-based tech company raised $850 million in Series G funding from Andreessen Horowitz and other investors.
Over $25bn Worth of Deals in the First Half of the Year
Although the coronavirus outbreak had a significant impact on the fintech deal activity, the COVID-19 also accelerated digital trends. The surge in demand for cashless payments, digital platforms, and other fintech-related services is driving many companies to double down their fintech investments.
The KPMG data show the combined value of 1,221 fintech deals between January and June amounted to $25.6bn. Venture capital investments accounted for 83% of that figure, with 1,016 deals in this period. Merger and acquisitions and private equity investments follow with 174 and 31 deals, respectively.
Statistics also revealed that in the first quarter of 2020, the combined value of deals amounted to $13.9bn, a 43% drop year-over-year. The second quarter of 2020 witnessed $11.7bn worth fintech deals, a 21% plunge compared to the same period in 2019.