EMEA Fintech Funding Falls to Decade Low in H1 2026 as Geopolitical Pressures Weigh on Investment
EMEA Fintech Funding Falls to Decade Low in H1 2026 as Geopolitical Pressures Weigh on Investment #
EMEA fintech investment totaled $11.3 billion across 626 deals in the first half of 2026, putting the region on course for its weakest annual performance by both deal value and volume in a decade, according to KPMG’s latest Pulse of Fintech report.
The total represents a 37 percent drop from the $18.0 billion logged across 753 deals in H2 2025, and a decline of roughly 17.5 percent compared with the $13.7 billion and 759 deals recorded in H1 2025. By comparison, the Americas attracted $86.9 billion in fintech investment over the same period, with the United States alone accounting for $80.8 billion.
KPMG’s report, which draws on PitchBook data, cites escalating regional tensions linked to conflict in the Middle East, new U.S. tariff policies, and persistent inflation and interest-rate concerns as factors weighing on investor sentiment. In the UK, historically EMEA’s dominant fintech hub, political uncertainty and concerns over new wealth taxes added further pressure, with London’s share of total EMEA investment falling from 68 percent at end-2025 to 22 percent in H1 2026.
The UK retained its position as the region’s top market by deal activity, recording $2.5 billion across 205 transactions. Germany ranked second with $1.6 billion across 36 deals, while the Middle East drew $1.4 billion across 50 deals and African jurisdictions collectively attracted $403 million across 44 transactions.
By deal type, venture capital accounted for the largest share of activity, with $6.6 billion deployed across 452 rounds. Private equity accounted for $2.6 billion across 28 deals, while mergers and acquisitions generated $2.1 billion through 146 transactions.
The three largest individual transactions were all PE-driven: a $1.2 billion buyout of a Denmark-based digital investment bank, a $1.0 billion minority-stake acquisition in a Belgium-based real-time trade intelligence firm, and a $738.7 million growth round for UK cross-border payments platform Ebury. In the Middle East, notable deals included a $250 million raise by a UAE payments and data intelligence company and a $230 million seed round for a UAE AI-native Islamic bank. Africa’s largest deal was an $80 million raise by a Seychelles-based stablecoin platform.
The report also noted growing investor interest in stablecoins and digital assets, driven partly by regulatory clarity under the EU’s MiCA framework as companies sought licences ahead of the transitional deadline. AI-native fintechs focused on compliance automation, digital identity, and cybersecurity continued to attract capital through the period.
Looking to H2 2026, KPMG pointed to growing institutional adoption of digital assets, expanding AI applications in payments, and an uptick in strategic M&A activity as factors that could support a recovery, contingent on easing macroeconomic conditions.
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