India's fintech sector funding up 2% to $2.4 billion in 2025
17 Jan 2026, 10:57 AMGlobally, in terms of the funding amount, India secured the third spot after the US and the UK.
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India has secured the third spot globally for fintech investment with $2.4 billion raised in 2025, according to a Tracxn report.
However, this funding amount represents a modest 2% uptick from the previous year's $2.3 billion, placing the country behind only the United States and the United Kingdom.
The funding landscape showed interesting variations across different investment stages.
While seed-stage investments experienced a significant downturn, dropping 40% to $177 million, early-stage funding painted a much brighter picture with $1.2 billion raised, a remarkable 78% jump from 2024's figures.
Late-stage funding in the fintech space saw some contraction, declining by about a quarter to reach $1.0 billion.
The sector saw four mega-rounds exceeding $100 million by companies such as Groww, Weaver, and Raise.
Groww particularly stood out, not only raising $202 million but also making the year's biggest acquisition by purchasing Fisdom for $150 million. Groww later in the year made its debut on the stock exchanges.
Three new companies achieved unicorn status during the year, doubling the count from 2024 and tripling it from 2023.
Additionally, four companies successfully went public through intial public offerings (IPOs), including major names like Pine Labs and Groww, though this represented half the number seen in the previous year.
Geographically, Bengaluru continued its reign as India's fintech capital, capturing 42% of all sector funding, with Mumbai following as a strong second at 29%. The acquisition activity totaled 22 deals in 2025 compared to 28 in 2024 and 32 in 2023.
"India's fintech ecosystem continues to demonstrate resilience amid a period of funding moderation. While overall investments have seen a dip, the consistent activity at the early stage and the emergence of new unicorns highlight sustained investor confidence in the sector's long-term potential," said Neha Singh, co-founder, Tracxn.
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