Payments, lending and neobanks rule fintechs in emerging markets

Tech investments in emerging markets have been in full swing over the past couple of years and their ecosystems have thrived as a result. According to the report “State of Fintech in Emerging Markets Report” we can get the following points:

– Fintechs have raised $23B across the regions since 2017

– Africa’s average seed rounds stand at $1M, India and Latin America average $4M

– Latin America is IPO-hungry, India breeds unicorns while Africa is just getting started with M&A

– Payments, Lending and Neobanks lead Fintech activity: B2B payments reign supreme. The next two funded Fintech categories are credit and digital banking.

– Africa is lagging years behind Latin America and India. It is expected that in five years the African continent will get to where Latin America and India are at the moment.

– Most fintechs across emerging markets are crossing over to different sectors like crop insurance, credit lines for distributors and vendors, KYC, e-commerce payment gateways, medical finance and insurance.