ASPAC Fintech Investments Hit 10-Year Low in 2025: KPMG Reveals Sharp Decline in Deal Value and Volume

The ASPAC fintech sector experienced a dramatic downturn in 2025, with both deal value and volume plummeting to levels unseen in over a decade per the latest KPMG report.

Total investments dropped to $9.3 billion across 763 deals, compared to $11.7 billion and 1,028 deals in 2024, signaling heightened investor caution amid global uncertainties.

Regional Breakdown and Impacts

In China, fintech funding fell from $991.7 million in 2024 to $876.1 million, hampered by economic slowdowns, geopolitical tensions, and stringent regulations.

Australia faced a steeper decline from $1.9 billion to $609 million, reflecting broader market rightsizing and inflationary pressures.

South Korea defied the trend, with investments rising to $402.4 million, largely driven by the super app Toss's $200 million VC raise.

Singapore showed resilience with a rebound to $1.04 billion in the first half of 2025, highlighting its status as a fintech hub.

Key Deals and Sector Trends

Notable transactions included Airwallex's $330 million VC round and Mizuho Financial Group's $313.6 million acquisition of AI-driven Upsider.

Venture capital dominated at $7.5 billion across 672 deals, while M&A activity totaled $1.7 billion in 82 deals.

Future Outlook and Consolidation

Looking ahead, AI innovations including large language models and data privacy solutions are poised to drive recovery in 2026.

Smaller fintechs are pursuing consolidation for scale and sustainability, as emphasized by KPMG Australia's Daniel Teper.

Macroeconomic stability and reduced geopolitical risks will be crucial for reigniting investor confidence in the region.