KPMG Fintech report crypto NFT interest growing in EMEA

VC investment surpasses $30 billion

VC investment in fintech skyrocketed in the EMEA region during 2021 – more than tripling from it’s previous high of $9.9 billion in 2020. H2’21 saw numerous jurisdictions across the region raise $100 million+ megarounds, including lesser known fintech ecoystems like Nigeria ($400 million – Opay), Gibraltar ($400 million – Bullish Global), Iceland ($344 million – SaltPay), Denmark ($350 million – Pleo), and Austria ($263 million – Bitpanda), South Africa ($120 million – JUMO), and Ghana ($100 million – MFS Africa). 

The payments space was incredibly hot across the EMEA region, with deals ranging from the $9.2 billion acquisition of Nets by Nexi to a $400 million raise by OPay in Nigeria – which earned the company unicorn status; the raise was also the largest single round raised by a startup in Africa ever¹.

Digital banks remain in the spotlight

2021 saw a significant amount of VC funding flow to digital banks, with the lions share going to mature challenger banks in Europe – including a $900 million raise by N26 and an $800 million raise by Revolut in the second half of the year. H2’21 did throw some wrenches into the space as both N26 and Monzo bank decided to forgo the US market – primarily as a result of regulatory complexity. Profitability also continued to be a challenge – which could lead to some consolidation in the digital banking space longer term.

In terms of trends for 2022, the KPMG report sees increased investment in DeFi, and a push for the development of a common regulatory framework for crypto. They also expect growing fintech deal sizes in the Middle East and Africa.