EMEA fintech funding drops sharply in H1

Funding for fintech companies based in Europe, the Middle East and Africa fell to $11.3 billion across 626 deals in the first half of the year, the Pulse of FinTech H1 report by KPMG found. That compares with $18 billion raised in the previous six-month period.

Globally, investment in fintech rose to $101 billion from $72.2 billion over the same January–June period. KPMG noted global capital reached its highest level in four years and that the totals put the sector on course for its strongest year since 2022.

The report, which covers capital deployment between January and June, shows a divergence between regional and global trends.

Report authors and market observers pointed to greater investor selectivity as a factor in the EMEA decline. Investors concentrated funds on fewer companies with clearer paths to scale and more proven business models, reducing total deployment even as some large rounds closed.

Ireland’s fintech funding fell 9% in H1, from $173 million to $158 million. Notable transactions in the period included tax automation firm Fonoa’s $110 million raise and audit platform Circit’s $22 million round.

“Ireland’s fintech sector remains strong in 2026, despite a decrease in investment compared to the same period last year,” Ian Nelson, partner and head of financial services and regulatory at KPMG in Ireland, noted. “There is still an appetite with investors for Irish fintechs that offer innovative solutions to real business challenges and demonstrate a clear path to scale.”

The report’s regional breakdown shows global flows increased while EMEA funding declined, even as specific companies and subsectors secured large rounds.