Tracxn Report: India Ranks 3rd Globally in FinTech Startup Funding with $889 Million in H1 2025.
Economy Business
According to Tracxn’s Semi‑Annual India FinTech Report H1 2025, India’s FinTech sector raised $889 million in the first half of 2025, securing the 3rd highest global ranking in startup funding—trailing only the United States and the United Kingdom, despite an overall global slowdown.
- India’s FinTech funding dropped by 26% from the record $1.2 billion raised in H2 2024 and by 5% year‑on‑year from $936 million in H1 2024, demonstrating a softening of investment climate. Nevertheless, the nation's position among the top three FinTech ecosystems globally remains undiminished.
- Early-stage funding surged to $361 million, up 10% from H2 2024’s $329 million and 9% from H1 2024’s $333 million, indicating growing investor confidence in scalable, innovation-driven startups. In contrast, seed-stage funding dipped to $91.2 million, falling 27% from the previous half and 33% year-over-year.
Main Point :- (i) FinTech mergers & acquisitions picked up pace, with 16 deals in H1 2025—a 45% increase over H1 2024’s 11 deals. Notable transactions included Groww’s acquisition of Fisdom for $150 million, and InCred Money’s purchase of Stocko for $35 million, underscoring consolidation in the industry.
(ii) Geographically, Bengaluru dominated FinTech investment, attracting 55% of the total funds, followed by Mumbai with 14%, highlighting regional investment hubs in India.
(iii) Top investors during H1 2025 included Peak XV Partners, AngelList, and LetsVenture. At the early-stage level, Accel, Bessemer Venture Partners, and Peak XV led the rounds, while Blume Ventures shined at the seed level. Late-stage investments featured major participation from SoftBank Vision Fund, Lathe Investment, and Sofina.
About Tracxn Technologies
Chairperson and Managing Director (CMD): Neha Singh
Headquarters : Bengaluru, Karnataka
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