Venture capital-backed fintech companies set a new record last year with investors across the world raising $39.57bn, up by 120% from the preceding year, according to data published by research firm CB Insights recently.
The number of deals is also up from the 1,480 in 2017. The 120% increase, according to research data, was mostly due to 52 deals that saw investments over $100 million and made up for $24.88bn, the bulk of the total amount.
35% of the total investments in fintech companies last year was held by $14bn in funding raised by Ant Financial, the payment affiliate of China's Alibaba.
In the last three months of the year, five companies joined the coveted ranks of fintech "unicorns", or companies valued at more than $1bn. These include credit card provider Brex, digital bank Monzo and data aggregator Plaid.
Asian deals grew by 38% in 2018 from the previous year, the highest rise globally worth $22.65bn, the data revealed. Europe, however, saw a decline in deal volume even as the deal value hit a record high of $3.53bn.
According to data analytics platform Tracxn, fintech has also been among the top three sectors in India. In 2016, fintech companies raised $619m in 180 deals; in 2017, the number went up to over $2bn across 183 deals. Last year, the deal value went down to $1.5bn invested through 175 deals.
Fintech companies in the US raised a record $11.89 billion in 659 investments.