Fintechs Secure Prime Position in Emerging Expansion Ranking
Growth Spike in Fintech Firms Swarms UK Market
The blistering expansion of Britain's fastest-growing companies has reached unprecedented heights, according to the Growth Index - a yearly ranking of businesses that generate at least £5m in revenue. This revelation was published today, with an exclusive preview in City AM.
Leading the charge, a ticketing app called DICE FM dominates the top 100 companies, where they've grown staggeringly at an average of 114.2% yearly. This conquering growth surpasses last year's 107% and the previous year's 92%. While the loosening grip of Covid on baseline revenues plays a part, the accelerated growth can also be traced back to a specific sector's unprecedented surge — fintech.
A whopping 27 of the top 100 companies hail from the finance world, encompassing B2B payments, marketplace finance, budgeting, investing, and saving brands. This sector outnumbers retail and energy & utilities combined, and even more remarkably, it shows an increase from last year when only six fintechs snagged a spot on the list. This demonstrates the maturity and flourishing ecosystem of the broader financial services sector, particularly in London, where 24 of the leading fintechs and 55 of the top 100 are based.
As fintechs thrive, a significant increase in high-growth companies that previously received venture capital or private equity funding can be observed. Last year, only 14 Growth Index companies had completed equity rounds; this year, the count skyrockets to 68. The recent explosion in fintech fundraising, around $222bn in global VC investments over two years, with $26bn going to the UK, undoubtedly ignites the subsequent dazzling growth of its top contenders.
However, the burning question remains: Can the sector maintain this torrid pace, and its command on lists like the Growth Index?
The complete Growth Index report, featuring interviews with founders and detailed analysis, can be accessed here.
Enrichment Insights:
- Harnessing supportive policies and strategic initiatives, such as the FCA's sandbox program and open banking, fosters a nurturing environment for fintech innovation in the UK.
- Adequate funding from venture capital firms, angel investors, and traditional financial institutions backs the burgeoning success of UK fintech companies.
- Presence of skilled professionals trained in software development, AI, and data science, coupled with tax incentives for R&D, fuels the surge in fintech startup innovation.
- The UK's vibrant entrepreneurial culture attracts startups to innovate and scale, bolstered by growing international partnerships for expansion abroad.
- The fintech sector has experienced a steep increase in growth, with 27 fintech companies appearing in the top 100 of the Growth Index, showcasing an exclusive preview in City AM.
- This growth exceeds the previous year's figure, demonstrating the maturity and expansion of the financial services sector, particularly in London, where 24 of the leading fintechs and 55 of the top 100 are based.
- The rise of fintech companies has been fueled by adequate funding from sources like venture capital firms, angel investors, and traditional financial institutions, as well as supportive policies such as the FCA's sandbox program and open banking.
- The presence of skilled professionals trained in software development, AI, and data science, coupled with tax incentives for R&D, further boosts the surge in fintech startup innovation.
- With over $26bn in UK fintech funding over the past two years, the sector has witnessed a significant increase in high-growth companies that previously received venture capital or private equity funding, suggesting a potential continuation of this trend in the coming years.
