Fintech sector raised $1.6 billion in the first nine months of 2025, marking a 17 per cent decline from $1.9 billion in the same period last year, according to a report by Tracxn, market intelligence platform.
Despite the funding slowdown, India maintained its position as the third-highest funded country globally for fintech, trailing only the United States and the United Kingdom. The sector witnessed mixed performance across different funding stages during the period.
Seed-stage funding saw the steepest decline, dropping 38 per cent to $129 million from $208 million in 9M 2025. Late-stage funding also fell 23 per cent to $863 million. However, early-stage investments showed resilience, rising 8 per cent to $598 million, indicating sustained investor confidence in emerging fintech ventures.
The period recorded only two funding rounds exceeding $100 million, compared to three in the previous year. Groww led with a $202 million Series F round, while Weaver Services secured $170 million.
“India’s fintech ecosystem continues to demonstrate resilience amid a period of funding moderation,” said Neha Singh, Co-Founder of Tracxn. She highlighted that consistent early-stage activity and the emergence of two new unicorns underscore investor confidence in the sector’s long-term potential.
Bengaluru retained its dominance as India’s fintech hub, accounting for 52 per cent of total funding, followed by Mumbai at 22 per cent. The exit landscape showed modest activity with 23 acquisitions, up 5 per cent from the previous year. Resulticks’ $2 billion acquisition by Diginex emerged as the largest deal, followed by Fisdom’s $150 million acquisition by Groww.
However, public market activity remained subdued, with only one IPO—Seshaasai—compared to seven in the corresponding period of 2024, reflecting cautious market sentiment among fintech companies considering public listings.
Published on October 10, 2025