The market has seen dramatic changes in the past few months owing to the outbreak of deadly coronavirus. The trends have changed to India receiving more funding in Fintech sector than China for the first time in last 5 quarters. The total investment though has decreased in Asia by 69% in funding and 23% in deals.
The Fintech industry saw a drop of $6.1 billion across 404 deals and it is said to be the worst quarter for the industry since 2016. Investors have been pulling back the deals in early stage bets to create a protection from predicted recession. Quarter 1 in 2020 saw 228 deals (Seed and Series A) which is the lowest in 13 quarters and $1.1 billion funding, lowest in 9 quarters.
Chinese Fintech companies have been the worst hit in this situation resulting in the worst quarter since 2015 Though India left China behind in the funding, both the countries had same number of deals. Currently the companies are working on product development to handle what comes ahead.