Fintech, consolidation is underway

The acceleration is visible. According to figures from France Fintech, mergers and acquisitions in fintech have doubled between 2021 and 2022, going from 16 to 33. In less than six months, 2023 has already seen around fifteen new operations take place. And, since 2022, five foreign fintechs have acquired French companies, while conversely, nine foreign companies have been acquired by French fintechs.

That's a pretty good sign. “Despite this challenging environment, fintech business continues to grow, revenue is growing, and monetization is on track. Some have the resources that allow them to make acquisitions,” says Alain Clot, President of France FinTech. The movement concerns different types of operations: “opportunists when the strongest buy out their competitor in cash flow difficulties, for example, by taking advantage of the moment to buy at a reasonable price; strategies that correspond to extensions of activities or territories; and asset takeovers when a company can no longer continue its activity and sells its portfolio, its technology or its team, rather than going out of business, he explains. In certain market segments, there is not necessarily enough room for a third or a fourth player…”

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