Bulgaria’s Fintech Sector Sees Rapid Growth, Hits Record High Operating Revenue
A Vibrant and Rapidly Growing Fintech Sector in Bulgaria
According to the Bulgarian Fintech Association’s annual report for 2020, the fintech sector in Bulgaria is experiencing rapid growth. The report highlights that there are approximately 100 fintech companies in Bulgaria, with 66 emerging and 34 established firms.
Record High Operating Revenue
The total operating revenue of the fintech sector has been steadily increasing by approximately 25% annually over the past three years, reaching an all-time high of EUR 361 million in 2020. The majority of Bulgarian fintech companies operate in the payments segment, followed by blockchain and capital markets segments.
Venture Capital Investments
Venture Capital (VC) investments in fintechs have also seen significant growth, with fintech VC investments in 2019 accounting for one-third of all VC investments in Bulgaria. Sofia, the capital city, is at the heart of the Bulgarian fintech ecosystem, hosting 84 of the identified fintech companies and boasting a strong tech talent pool and business infrastructure.
Breakdown of Fintech Segments
The report notes that each of the fintech segments, including:
- Blockchain
- Crypto
- Capital markets
- Insurance
- Lending
- Mortgage
- Real estate
- Payments
- Personal finance
- Regtech
- Wealth management
has a representative company in Bulgaria. However, payments and billing solutions remain the most popular development field for Bulgarian fintech companies, with nearly 35% of them operating in this segment.
Conclusion and Future Plans
While the fintech industry is still small compared to the national GDP, it holds significant promise for developing countries like Bulgaria, providing an opportunity to catch up and promote a highly efficient economy. The Bulgarian Fintech Association aims to support entrepreneurship in the sector and foster the development of financial technologies in Bulgaria.
Full Report Available
The full report can be downloaded from the Bulgarian Fintech Association’s website.