42 percent of UAE Fintech deals went to crypto and blockchain entities

According to a recent report by Fintech Global, while the UAE Fintech deal activity dropped 54 percent year on year, with deal activities reaching 24 deals in the first hald of 2023,…

According to a recent report by Fintech Global, while the UAE Fintech deal activity dropped 54 percent year on year, with deal activities reaching 24 deals in the first hald of 2023, 42% of those deals were in blockchain and crypto companies, totalling 10 deals.

The report noted that  UAE FinTech companies raised a combined $101m in investment during H1 2023, a 72% reduction from H1 2022.

In the first half of 2023, the number of FinTech deals in the UAE declined 54% compared to the previous year, totalling 24 deals. During the first half of 2023, FinTech companies in the UAE raised a combined investment of $101m, reflecting a substantial decrease of 72% compared to the same period in 2022.

As per Fintech Global, Tabby, a buy now pay later provider, had the largest FinTech deal in the UAE during H1 2023, raising $58m in their latest Series C funding round, led by Peak XV Partners and STV. The company intends to use the funds to expand its product line into next-gen consumer financial services and support its growing operations.

Moreover, blockchain & crypto was the most active FinTech subsector in the UAE during H1 2023 with 10 deals, 42% share of total deals.

In addition Bain & Company noted in a recent article,  noted that Web3 remains highly relevant for private equity in the Middle East.

The emerging web3 ecosystem now boasts thousands of companies funded by approximately $94 billion in start-up capital from venture funds, hedge funds, private equity, and other investors. The foundational building blocks are blockchains, smart contracts, and tokens.

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