Over the last five years, funding rounds in fintech have driven valuations higher and higher. The influx of finance has led to bursts of accelerated spending by fintechs. Now, the market is slowing down. Investment rounds are becoming less frequent, valuations are falling, and fintechs are spending less.
Now that fintech is becoming commoditised, start-ups need to ensure they’re using technology to meet a customer need. Investors are asking how well a product will satisfy a market and whether it is sufficiently differentiated. They’re scrutinising business models to make sure they’re sustainable and can be profitable.
The mergers and acquisitions market continues to grow, while some payment companies are floating on the stock market. Strategic and financial investors can see the value of investing in the payments industry. The sector has delivered superior and reliable returns over the last 20 years and continues to innovate today.
Private equity investors and strategic buyers have focused on merchant services, fintech, digital payment wallets and payment service providers. Some investors have supported legacy payment companies as they introduce new technology and push for greater scale.
EDC has unrivalled global expertise in the payments industry and works closely with the world’s leading investors and private equity companies.
We help strategic investors to find a deal that best fills any market or capability gaps they have, and can help with market research and target selection. We also provide strategic support for initial public offerings (IPOs), to help private equity firms and private enterprises prepare for flotation.
We’ll work alongside you as you define your value proposition. We’ll collaborate with you throughout the development and launch phases, and ultimately help you to scale.
“The payment and wider Fintech industry have been a hot bed for external investment in recent years. EDC engages with financial and strategic investors on deal origination and buy-side projects by identifying investment targets and undertaking commercial due diligence. EDC also works with investment banks and clients to prepare for capital raises or IPOs by being subject matter experts in payments.”
“EDC has been involved in some of the leading M&A deals globally, whether we are representing the sell-side or buy-side of the transaction. Based on our long history of working within the payments and fintech industries and by always putting our clients first, our expertise is in great demand. The M&A team at EDC typically prepares the latest market situation analysis, competitive assessments and brings a wealth of relevant information and knowledge from across financial services industry globally.”
How can EDC support your investment objectives?