Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - Asia

Asia

The total transaction value in the Crowdlending (Business) market market is expected to reach €16.79bn in 2024.
When comparing globally, it is evident that China leads with the highest transaction value, reaching €14,660m in 2024.
This showcases the significant market activity within the country in Asia.
In China, the CrowdLending market for Capital Raising is witnessing a surge in demand from tech startups seeking alternative funding sources.

Key regions: China, United Kingdom, Brazil, Israel, India

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Analyst Opinion

CrowdLending (Business) market in Asia is experiencing significant growth and development. This can be attributed to several factors including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences in the CrowdLending (Business) market in Asia are shifting towards alternative financing options. Small and medium-sized enterprises (SMEs) in the region are increasingly turning to CrowdLending platforms as a source of funding. This is driven by the ease and convenience of accessing loans through online platforms, as well as the ability to secure funding quickly without the need for extensive paperwork or collateral.

Trends in the market indicate that the CrowdLending (Business) market in Asia is becoming more competitive. As more platforms enter the market, borrowers have a wider range of options to choose from. This has led to increased innovation and differentiation among CrowdLending platforms, with some offering specialized services tailored to specific industries or sectors.

Additionally, there is a growing trend towards peer-to-peer lending, where individual investors can directly lend money to businesses, bypassing traditional financial institutions. Local special circumstances also play a role in the development of the CrowdLending (Business) market in Asia. In many countries in the region, access to traditional financing options for SMEs is limited.

Banks and other financial institutions often have strict lending criteria and require significant collateral, making it difficult for small businesses to secure loans. CrowdLending platforms provide an alternative avenue for funding, allowing SMEs to bypass these barriers and access the capital they need to grow and expand. Underlying macroeconomic factors also contribute to the growth of the CrowdLending (Business) market in Asia.

Economic growth in the region has been strong in recent years, creating a favorable environment for businesses to thrive. This has increased the demand for financing among SMEs, and CrowdLending platforms have emerged as a viable solution to meet this demand. Additionally, low-interest rates in many Asian countries have made borrowing more affordable, further driving the growth of the CrowdLending market.

In conclusion, the CrowdLending (Business) market in Asia is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As more SMEs turn to alternative financing options, CrowdLending platforms are providing a convenient and accessible solution. The market is becoming more competitive, with increased innovation and differentiation among platforms.

Local circumstances, such as limited access to traditional financing options, further contribute to the growth of the CrowdLending market. Finally, favorable macroeconomic factors, including strong economic growth and low-interest rates, create a conducive environment for the development of the CrowdLending (Business) market in Asia.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.