The fintech sector raised $1.6 billion in the first nine months of 2025, down 17 percent from $1.9 billion in the same period last year, according to a report from market intelligence platform Tracxn.
Despite the slowdown in funding, India maintained its position as the third-highest funded country in the world in fintech, behind only the United States and the United Kingdom. The sector showed mixed performance across financing stages over the period.
Seed-stage financing saw the steepest decline, falling 38 percent to $129 million from $208 million in the first nine months of 2025. Late-stage financing also fell 23 percent to $863 million. However, early-stage investments showed resilience, rising 8 percent to $598 million, indicating continued investor confidence in emerging fintech companies.
There were only two funding rounds of more than $100 million during the period, compared to three in the previous year. Groww led with a $202 million Series F round, while Weaver Services raised $170 million.
“The Indian fintech ecosystem continues to show resilience amid a period of subdued funding,” said Neha Singh, co-founder of Tracxn. She highlighted that consistent early-stage activity and the emergence of two new unicorns underline investors’ confidence in the long-term potential of the sector.
Bengaluru maintained its dominance as India’s fintech hub, accounting for 52 percent of total funding, followed by Mumbai with 22 percent. The exit landscape showed modest activity with 23 acquisitions, up 5 percent from the previous year. Diginex’s $2 billion acquisition of Resulticks emerged as the largest deal, followed by Groww’s $150 million acquisition of Fisdom.
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 a stock exchange listing.
Published on October 10, 2025
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