The Second Annual Report of the Bulgarian Fintech Association: the Local Fintech Sector in Figures and the First Mapping of the Fintech Ecosystem in Bulgaria
The Bulgarian Fintech Association just published its second comprehensive annual report about the Fintech sector in the country. The research was conducted in cooperation with SEE News and provides extensive information about the industry – number and distribution of the companies by sector, analysis of the regulatory landscape, the investments in Fintechs and the place of the Bulgarian Fintech in South East Europe. For the first time, the annual report includes a mapping of the companies and the organisations that are part of the fintech ecosystem in Bulgaria
We are happy that we partnered the BFA in the creation of the first mapping of the fintech sector in Bulgaria, which is part of the report! In October, our teams also officially presented the first Fintech mapping of Sofia, which we developed together as part of a series of sectoral mappings dedicated to various priority industries in Sofia (including Govtech, Fintech, Gaming and MICE).
According to the Report, the estimated number of Bulgarian Fintech companies is 100 – 66 of which emerging and 34 developed. More than half of the companies were established between 2015 and 2020, with 22 being established in 2018 alone. Following a constant increase in the number of employees in the last five years, there was a slight decrease in 2019 to 3,338 people from 3,667 in 2018.
In 2020, the Fintech companies in Bulgaria hit an all-time high operating revenue of EUR 361 million. Venture capital investments in fintech companies equal to 1/3 of all VC investments in Bulgaria. The local startups are backed not only by a number of venture capital funds, angel organisations and private investors, but also by startup supporting initiatives of local banks.
Again, the heart of the Bulgarian fintech ecosystem is the capital Sofia with 84 of the identified fintech companies being headquartered here. Our city is one of the fastest-growing destinations in SEE and is becoming the fintech centre of the CEE region as well.
The fintech enterprises cover a wide variety of fintech segments. Still, payments and billing, capital markets, lending and personal finance are the most preferred development fields for the Bulgarian fintech companies.
According to Valeri Valtchev, Co-founder and Chairman of BFA: ‘Although the Bulgarian Fintech industry is considered a small contributor to the national GDP, it is one giant leap towards a high-value-added economy. For developing countries such as Bulgaria, the Fintech industry provides one of a few opportunities for catching up and promoting a highly efficient economy.