UK tech firms must embrace M&As to survive investment slump, says leading fintech entrepreneur

PayAlly founder and CEO Rafal Andzejevski urges tech startups to consolidate as the industrywide funding dip continues

LONDON, UK, September 13, 2023/EINPresswire.com/ -- Leading fintech entrepreneur Rafal Andzejevski has today urged fintech firms to embrace M&As amid the recent fall in fintech investment.

The intervention comes as the high-profile Microsoft acquisition of Activision Blizzard moves towards the finish line – subject to regulatory approval in the UK – highlighting the importance of technology firms consolidating amid the current investment dip.

While the UK ranked second globally in the first half of 2023 for fintech investment, recent research from market intelligence platform Tracxn showed that year-on-year investment volume dropped by 78%, down from $9.1bn in 2022 to only $2bn this year.

Andzejevski believes that the funding decline is a symptom of the wider economic environment, and won’t hold back firms that want to consolidate through M&As. He is confident they will not only help smaller startups to avoid collapse, but increase their economies of scale, create powerful synergies in their client base, and acquire new intellectual property.

Rafal Andzejevski, leading fintech entrepreneur, said: “Irrespective of whether the Microsoft and Activision Blizzard merger goes ahead, the industry should take the deal as a signal to embrace M&A deals. I think this helps firms to consolidate and better protect themselves from instability in the market. Especially given the current fall in investment seen across the sector.

“M&As also come with a raft of benefits. Consolidation can be a brilliant solution for fintechs while investment remains low. If done correctly, M&As accelerate development timelines by introducing fresh perspectives within teams, combining the best talent, and sharing intellectual property.

“Perhaps more importantly, the process can help companies increase their economies of scale, bringing together established client bases, consolidating resources, and creating synergies that lead to improved operational performance.

“Instead of chasing VC investment, which is increasingly difficult to secure, fintech companies should take initiative and sign M&A deals to strengthen their position in the market, and give them a solid foundation to push through the difficult months ahead.”

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Marcus Goldsmith
PayAlly
+44 20 8064 1829
news@payally.co.uk