India's Fintech Funding Dips 26% in H1 2025, Retains Third Spot Globally: Tracxn
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India's fintech sector attracted USD 889 million in funding during the first half of 2025, reflecting a 26 per cent drop from the USD 1.2 billion raised in the second half of 2024, according to market intelligence platform Tracxn. Compared to the same period last year, when the sector raised USD 936 million, funding has also declined.
Despite the dip, India continues to hold the third position globally in fintech funding, behind the United States and the United Kingdom.
Neha Singh, Co-Founder, Tracxn, said, "While the Indian fintech sector has seen a temporary dip in funding, the steady momentum in early-stage investments and growing acquisition activity indicate that investor interest remains strong, particularly in scalable, innovation-led models. Bengaluru's dominance and the continued emergence of breakout companies reinforce India's position as a global fintech powerhouse."
The breakdown of funding stages in H1 2025 reveals a complex picture. Seed-stage startups raised USD 91.2 million, down 27 per cent from USD 126 million in H2 2024 and a 33 per cent fall from USD 137 million in H1 2024. In contrast, early-stage funding rose to USD 361 million, marking a 10 per cent increase from USD 329 million in H2 2024 and 9 per cent higher than the USD 333 million raised in H1 2024. Late-stage funding, however, declined to USD 437 million, a 41 per cent plunge from USD 745 million in H2 2024 and a 6 per cent decrease compared to USD 467 million in H1 2024.
No fintech firms debuted on the public markets during this period, continuing the lull in IPO activity. However, one new unicorn emerged, matching the tally in H2 2024 and showing progress from H1 2024, which had none.
The first half of 2025 also saw 16 fintech acquisitions, up 45 per cent from 11 deals in H1 2024, though slightly lower than the 17 recorded in H2 2024.
Top investors in H1 2025 included Peak XV, AngelList, and LetsVenture. In the early-stage segment—where funding momentum was strong—leading investors were Peak XV, Accel, and Bessemer Venture Partners. Blume Ventures, Venture Catalysts, and 100Unicorns dominated seed-stage activity, while late-stage rounds were backed by SoftBank Vision Fund, Lathe Investment, and Sofina.
Among VC firms, US-based Accel stood out with 34 investments, while India's Blume Ventures added seven new companies to its portfolio during the period.
Geographically, Bengaluru remained the fintech investment hub, drawing 55 per cent of total funding, followed by Mumbai with 14 per cent.
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