India’s fintech sector raised $2.4 billion in funding in 2025, ranking third globally behind the US and the UK, according to the Geo Annual India FinTech Report 2025 released by market intelligence platform Tracxn. The total marked a modest 2% increase from the $2.3 billion raised in 2024.
The ecosystem saw four funding rounds of $100 million or more during the year, led by Groww, Weaver, and Raise. Early-stage funding emerged as a key bright spot, rising 78% on year to $1.2 billion, up from $667 million in 2024, reflecting continued investor confidence in younger fintech companies despite broader funding moderation.
By contrast, seed-stage funding declined sharply to $177 million, down 40% from 2024 while late-stage funding fell 26% to $1.0 billion, compared with $1.4 billion raised in each of the previous two years.
“India’s fintech ecosystem continues to demonstrate resilience amid a period of funding moderation,” said Neha Singh, Co-Founder of Tracxn. “The consistent activity at the early stage and the emergence of new unicorns highlight sustained investor confidence in the sector’s long-term potential.”
Deal activity showed signs of cooling. The sector recorded 22 acquisitions in 2025, down 21% from 28 deals in 2024. The largest transaction of the year was Groww’s $150 million acquisition of Fisdom, making it the biggest fintech deal in India in 2025. This was followed by InCred Money’s $35 million acquisition of Stocko.
On the exit front, four fintech companies went public in 2025, a 50% decline from the eight IPOs recorded in 2024. The companies that listed during the year included Pine Labs, FinanceBuddha, Groww, and Seshaasai.
Despite fewer exits, the sector saw the creation of three new unicorns in 2025, up from two in 2024 and one in 2023, underscoring continued scale-up potential within the ecosystem.
Bengaluru retained its position as India’s leading fintech hub, accounting for 42% of total funding raised during the year, followed by Mumbai with 29%. Among investors, Antler, Blume Venture and Venture Catalysts were the most active at the seed stage, while Peak XV Partners, Accel and Elevation Capital led early-stage investments. SoftBank Vision Fund, Lathe Investment and Sofina emerged as the top late-stage investors.
The Tracxn report draws on proprietary data to provide a comprehensive overview of funding trends, acquisitions, IPOs, unicorn creation, and investor participation across India’s fintech landscape in 2025.