The significant amount comes after the economic downturn in the first quarter.
Fintech funding impacted by coronavirus pandemic in Q1
Online payment processing platform Stripe raised $850 million followed by Robinhood at $430 million while Vero has raised $241 million.
Health insurance company Oscar raised $225 million with Carta closing the top five categories at $210 million.
The five fintech firms account for 51.34% of the total raised amount by the firms overviewed in our research.
Furthermore, Fundbox raised $200 million followed by Airwallex’s $160 million.
Checkout.com, Marqeta and Brex raised $150 million each. During the second quarter of this year, Aspiration raised $135 million followed by UK’s Starling Bank at $123 million.
Other notable fintech firms that raised significant amount include Stash ($112 million), N26 ($100 million), Onfido ($100 million), Bought By Many ($95 million), Monzo ($75 million), Trade Republic ($73 million), SolarisBank ($67 million), Taxfix ($64 million), Alan ($55 million), and Lunar ($50 million).
The funding comes as a step in the direction after a turbulent first quarter due to the coronavirus crisis. According to the research report:
“The coronavirus pandemic led to an economic downturn, presenting a perfect opportunity for the fintech sector to explore different opportunities for mass adoption. Most specifically, the pandemic resulted in a change in consumer behaviour that might stick around for a long time.”
The research overviewed the market capitalisation of payment companies at the end of the first quarter and second quarter this year.
From the data, PayPal had a market capitalization of $112.3 billion on March 31 and three months later it stood at $92.3 billion totaling to $204.6 billion.
Shopify has the second-highest cap at $48.8 billion as of March 31, a figure that increased to $64.5 billion three months later. By the end of the first quarter, Adyen had a market cap of $25.5 billion droppings to $18.6 billion in the second quarter.
At the end of March, Square had a market capitalization of $22.8 billion and by the end of the second quarter, the figure stood at $23.3 billion. In the fifth spot, there is MarketAxess which had a cap of $12.6 billion which later increased to $19 billion at the end of the second quarter.