KPMG, a leading global professional services firm, published its Canadian fintech report and highlighted a significant drop in overall investments during the first half of 2022 (H1 2022), yesterday. According to the report, companies working in Canada’s financial technology ecosystem attracted $810 million worth of investments across 85 deals in H1 2022.
KPMG noted that over one-third of deals during the mentioned period happened in the crypto space despite challenging market conditions. Across 85 deals, 69 were venture capital deals with a total value of more than $776 million. Within the fintech space, 8 deals happened in the payment sector.
“The innovation coming out of Canada’s fintech space and the digital enablement it provides to the financial services ecosystem makes Canada an attractive place for fintech investment, and I think we’ll continue to see growth in areas like payments, reg tech and crypto, despite the upheaval in the crypto asset space and broader tech sector,” says Rajeev Shankar, the Partner Finance Transformation & Financial Services at KPMG in Canada.
In the first half of 2021, Canadian fintech companies attracted a record investment of $5.4 billion.
Global Fintech
While global financial markets struggled in the first half of 2022 amid rising inflation and uncertain economic conditions, the international financial technology sector remained resilient. Overall, the global fintech investments touched $107.8 billion in H1 2022, compared to $111 billion in H2 2021.
“We’re also seeing investment in fintech companies based in places like Charlottetown, Medicine Hat and Quebec City so that tells me that Canada’s fintech ecosystem will continue to evolve and diversify, both in terms of the types of fintech that emerge, the services they offer and even where they thrive,” Shankar added in the report.
Last month, the fintech firm, Tamara secured $100 million in its Series B funding round.
