The association of fintech with online marketplaces creates
- European marketplaces are now worth 685 billion euros combined
- Fintech-enabled marketplaces have EV / sales of 6.7x, compared to 5.3x and 4.6x for other marketplaces and financial services, respectively
- Record investment in online marketplaces (78 billion euros in 2021 YTD) means marketplaces have a significant amount of dry powder to invest
- Online marketplace sales now account for 19.5% of all consumer spending, up from 13.6% in 2019
Barcelona and London, September 22, 2021: As consumer spending continues to evolve rapidly online, online marketplaces are increasingly integrating fintech solutions to make it easier for consumers to shop online, and are also developing new revenue streams. , according to a new Adevinta report on fintech-compatible marketplaces in partnership with DealRoom and Speedinvest.
Data from our FinTech Compatible Marketplace report, the second in a series of Marketplace Trend reports, shows that combining financial services with online marketplaces generates disproportionate returns, that the borders blur between fintechs and place them to mutual growth.
FinTech unlocks significant value for online marketplaces
European marketplaces are now worth 685 billion euros combined. While fintech is the most funded vertical on the continent, fintech-enabled markets are proving to offer the best value for shareholders. According to the report, fintech-enabled marketplaces have an EV / sales of 6.7x, compared to 5.3x and 4.6x for other marketplaces and financial services, respectively. Online marketplaces are now accelerating and leveraging integrated plug and play fintech solutions, while building fintech products in-house. They create new monetization streams, improve user experience and boost customer loyalty.
Jordi Iserte, Director of Investments at Adevinta Ventures says: âThe long-term success of marketplaces depends on their ability to adapt and integrate fintech solutions into their platforms. This will allow for a seamless and frictionless experience and ultimately benefit customers. Fintech-enabled marketplaces are becoming the new normal and we are excited to play an active role in this growing market. ”
Mathias Ockenfels, General Partner, Speedinvest, comments: âAt Speedinvest, we have dedicated investment teams funding both marketplaces and fintech startups. Collectively, we have observed a clear trend: the merging of these two worlds. As the report shows, this is proving to be an attractive proposition for founders and investors.
Yoram Wijngaarde, founder of Dealroom.co, adds: âThe line between marketplaces and fintech is blurring. As we spend more time and money online, it seems clear that these two behemoths should work hand in hand, but this report shows exactly why. The disproportionate returns created by Fintech, marketplaces are a great incentive, for startups as well as for VCs, to create and support full-stack marketplaces focused on improving the customer experience.
Buy now Pay later
The soaring valuations of fintech products destined for marketplaces, such as âbuy now, pay laterâ, confirm the trend towards fintech activation. In addition, there remains enormous potential to serve the world’s unbanked and underbanked communities.
A record investment in online marketplaces (78 billion euros in 2021) indicates that marketplaces have a significant amount of dry powder to invest in the creation or acquisition of new in-house financial services.
Online sales, accelerating adoption
Online marketplace sales now account for 19.5% of all consumer spending, down from just 13.6% two years ago. Although this was accelerated by the pandemic, this is a trend that was already well advanced, with both online marketplaces and fintechs already benefiting from features like payments, “Buy now, pay.” later âor escrow, and allowing new sources of income.
Unbanked and underbanked populations in rapidly growing and digitizing markets offer additional growth opportunities for the mix of marketplaces and fintech in emerging markets. However, even in the most established markets, online marketplace sales have a long way to go. In the grocery store, for example, a $ 2 trillion industry in Europe, online penetration reached only around 5% in 2020 (up from 2% the previous year). This provides a great opportunity for both markets and their enablers.
Notes to editor
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Adevinta is a global specialist in online classifieds, operating digital marketplaces in 16 countries. The company provides technology-based services to connect buyers with sellers and to facilitate transactions, from jobs to real estate, cars, consumer goods and more.
Adevinta’s portfolio spans over 40 digital brands, covering one billion people and attracting around three billion monthly visits on average. Major brands include leboncoin at the top in France, leading classifieds sites in Germany mobile.de and eBay Kleinanzeigen, Marktplaats in the Netherlands, Kijiji in Canada, fotocasa and InfoJobs in Spain, and 50% of OLX Brasil , a fast growing company. Adevinta is a spin-off of Schibsted ASA and listed on the stock exchange in Oslo, Norway in 2019. Adevinta employs 6,300 people committed to supporting users and customers on a daily basis. Learn more at Adevinta.com.
About Adevinta Ventures
Adevinta Ventures is the investment arm of Adevinta, a global specialist in online classifieds that operates leading digital markets in 16 countries. Adevinta Ventures invests in fast growing European startups (sweet spot Series A and Series B) that can shape the future of marketplaces. Leveraging the leading positions of Adevinta brands (eg leboncoin, mobile.de, Coches.net, Fotocasa, Subito), Adevinta Ventures adds high value and is a long term partner of portfolio companies. The current portfolio and main investment areas include proptech (Kodit, Flatfair), future of work (Medwing), mobility (PaulCamper, Bipi) and fintech (Lovys). For more information, visit Adevinta.com/ventures.