In Q1 2022, the FinTech industry led the way in MEAPT, accounting for 28% of all financial transactions and capital investments. In terms of number of deals, Nigeria led the way with 27% of all transactions, and 36% of all capital investments. The UAE, Kenya, and Philippines followed closely behind, and each country recorded 540% growth quarter-on-quarter. Moreover, the number of startups in the FinTech industry grew by 540% in Q1 2022, an impressive quarter-on-quarter rate.
FinTech is the industry of choice for EVMs, and is rapidly evolving into a broader range of financial services. In MENA, investment platforms have joined the FinTech scene, as Rain and Colexion recently closed $110M rounds. In the first quarter of 2022, fintech startups closed significant numbers of deals, and funding continued to outpace the overall market. However, the industry faces significant challenges in the future.
The current market turmoil has created an unfavorable environment for fintech fundraising. Some companies are putting their listing plans on hold while others continue to find investors. However, investors and entrepreneurs remain optimistic about the market correction and are eager to see how their bets will play out before doubling down on their investments. This means that Q1 2022 should be a time to look at the trends in fintech funding.
Total app downloads for fintech startups increased to 880 million, up 44 per cent from Q4 2019. Crypto apps, banking, and payment apps drove growth. Latin America, North America, and Europe recorded the highest numbers of downloads during the quarter. The SEA is poised to grow quickly as an emerging market for crypto apps. Crypto apps accounted for 7 per cent of the top 50 fintech apps in Q1 2022.