Latest Update: All funding rounds, business sales, and bankruptcies of German financial technology companies by the year 2024
In 2024, the API banking sector in Germany witnessed a significant surge, with a total investment of 347 million euros. Two key recipients, Pliant and Solaris, secured a large portion of this funding.
The year also saw seven exits, including the sale of Creditshelf to Swiss competitor Teylor, which subsequently became the market leader for loans to small and medium-sized enterprises. Two fintechs, Fastbill and Ride Capital, were repurchased by their founders.
Berlin emerged as a hotspot for fintech funding, with top companies collectively raising over 1.3 billion euros by 2022. Notable fintech leaders in Germany include N26, Solarisbank, Trade Republic, Finleap, and Deposit Solutions. These companies are recognised for their large funding rounds and significant market presence.
The trading, investing, and crypto sector raised a total of 32.6 million euros, while the payment startup sector received over 1.7 billion euros, with SumUp receiving the largest funding of 1.5 billion euros in May 2024. The credit sector saw five financing rounds, totalling 219.6 million euros.
Global fintech financing dropped to 33.7 billion euros in 2024, marking the lowest level in seven years. Despite this, April 2024 saw the most financing rounds, with nine fintech companies receiving money from investors. The average volume of financing rounds increased to 4 million US dollars in 2024.
Pliant received funding twice in 2024, totalling 133 million euros, and Pile Capital was sold to Vivid just two years after its founding. Iwoca raised 175 million euros, primarily from Citibank and Insight Investments.
In total, there were 42 financing rounds in 2024, with 29 in the first half and 13 in the second half. Notably, no deals were identified in September 2024. Jitpay was insolvent when Volksbank Brawo acquired 100 percent of its shares.
The fintech sector in Germany continues to attract substantial investment, with the listed companies raising around 2.82 billion euros in 2024, with an average of 13.95 million euros per round. These figures indicate a promising future for the fintech industry in Germany.
- The surge in the API banking sector in 2024 extended to other areas, as real-estate and finance businesses witnessed investment activity of which Pliant received a significant portion.
- Solaris, being a key beneficiary in the banking sector, also ventured into the realm of investing, possibly aiming to diversify its business operations.
