GxS Clinches Major Singapore FinTech Deal in 2024 Amidst 57% Drop in National Funding
In 2024, the landscape of Singaporean FinTech investment underwent a significant transformation, revealing a 57% year-on-year decline in funding. These statistics highlight the evolving challenges within the sector as investors become increasingly cautious.
Declining Trends in Singaporean FinTech Funding
The Singaporean FinTech industry experienced a dramatic downturn in 2024, marked by notable decreases in both deal activity and overall funding. Here are the key statistics:
- 116 deals were recorded, indicating a 48% decrease from 221 deals in 2023.
- Total funding plunged to $1.7 billion, a 57% drop from $4 billion raised in the previous year.
- The average deal value decreased by 17% to $14.8 million from $18 million in 2023.
This substantial decline points to a cautious investment environment, influenced by economic uncertainties and regulatory challenges. Comparatively, in 2020, the sector raised $2.8 billion across 226 deals, which emphasizes the volatility of the FinTech investment cycle in Singapore.
Investor Priorities Shift Towards Sustainable Growth
The steep decline in funding during 2024 suggests a recalibration of investor focus towards sustainable growth rather than aggressive expansion strategies. As the market adapts to these new realities, FinTech firms in Singapore will need to:
- Demonstrate resilience and innovation.
- Develop strong regulatory strategies.
- Attract capital in an increasingly selective funding landscape.
Major FinTech Deals of 2024
Despite the downturn, some notable events occurred within the Singaporean FinTech sector. GXS Bank, a leading digital bank, secured the largest FinTech deal of 2024, completing a funding round of $169.1 million. This investment came from:
- Singtel and Grab, as per regulatory filings.
- Grab acquired the majority share, receiving 191.8 million out of 229.5 million shares.
- Singtel was allotted 37.7 million shares.
GXS Bank has also made significant strides in its FlexiLoan product, which focuses on gig workers and traditionally underserved customers, disbursing over 100,000 loans in its first year. Additionally, deposits for GXS and Malaysia’s GXBank surged to $479 million at the end of Q1 2023, up from just $36 million in Q1 2022, largely driven by Grab users.
Looking Ahead
The funding secured by GXS Bank will bolster its mission to provide innovative financial solutions and expand its service offerings. As the Singaporean FinTech landscape evolves, stakeholders will need to stay informed about trends and adjust their strategies accordingly. For more insights into the FinTech industry, visit FinTech News Singapore or explore our FinTech Insights page.
