DEPO Ventures' Michal Ciffra: "Fragmentation Was the Opportunity. Now We Need Consolidation"

In 2021, Central and Eastern Europe's fintech sector had plenty of reasons for optimism. Estonian-founded Wise made its London Stock Exchange debut at a valuation of around $11 billion, Czech buy-now-pay-later startup Twisto was acquired by Australia's Zip for €89 million, and Bulgaria-born Payhawk secured a $20 million Series A round. And the region's fintech ecosystem continued attracting international investors.

The timing, however, was hardly ideal. After years of cheap capital and ambitious valuations, the global funding environment began to change. Rising interest rates, inflation, and economic uncertainty made investors more cautious, while the collapse of the 2021 venture capital boom brought greater scrutiny of startup profitability and growth. Fintech, one of the sectors that had benefited from the previous investment cycle, was particularly exposed.

By 2023, the conversation had shifted from how quickly fintech startups could scale to whether their business models could sustain that growth. Capital had not disappeared, but raising it had become considerably harder. According to KPMG's Pulse of Fintech report, global fintech investment fell from $196.6 billion in 2022 to $113.7 billion in 2023, while investment across Europe, the Middle East, and Africa halved from $49.6 billion to $24.5 billion.

Fast-forward to 2026, and the sector is facing another transformation. GenAI is changing how financial products are developed, how companies operate, and what investors expect from their portfolios. Meanwhile, CEE founders continue to face familiar structural challenges: fragmented markets, different regulatory environments, and limited access to late-stage funding.

For Michal Ciffra, Partner at DEPO Ventures and one of the key people behind The Fintechers, CEE has already proven its ability to produce globally successful fintech companies. And while CEE's fragmentation has historically encouraged founders to think globally from the beginning, Ciffra believes the next phase of growth will require something different: consolidation, cooperation, and a stronger regional identity.

"Fragmentation was the opportunity. However, now we see that we need consolidation."