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India’s financial technology sector continued to show steady momentum in 2025, raising a total of USD 2.4 billion in funding and ranking third globally, behind the United States and the United Kingdom. Despite a cautious global investment environment, the country retained its position as one of the world’s most active FinTech markets, supported by strong early-stage activity, large funding rounds and continued consolidation across segments.
According to the Geo Annual India FinTech Report 2025 released by Tracxn, the USD 2.4 billion raised in 2025 marked a marginal 2% increase compared to USD 2.3 billion in 2024. While overall funding levels remained largely stable, the composition of investments shifted significantly across stages, reflecting changing investor priorities within the ecosystem.
Seed-stage funding declined sharply to USD 177 million in 2025, down 40% from USD 295 million in 2024 and lower than the USD 253 million recorded in 2023. In contrast, early-stage funding emerged as a key bright spot, reaching USD 1.2 billion during the year. This represented a 78% jump from USD 667 million raised in 2024 and a 56% increase over 2023 levels, highlighting sustained interest in scalable business models and product-led growth. Late-stage funding stood at USD 1.0 billion a 26% decline compared to the USD 1.4 billion raised in both 2023 and 2024.
The year saw four funding rounds exceeding USD 100 million, consistent with the previous two years. Major deals included Groww’s USD 202 million Series F round, Weaver’s USD 170 million fundraising and Raise securing USD 120 million in a Series B round.
Neha Singh, Co-founder of Tracxn, said “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.”
Mergers and acquisitions activity slowed in 2025 with 22 deals recorded, compared to 28 in 2024. The largest transaction was Groww’s USD 150 million acquisition of Fisdom, making it the biggest FinTech deal of the year, followed by InCred Money’s USD 35 million acquisition of Stocko.
On the public markets front, the sector witnessed four IPOs in 2025, a 50% decrease from eight listings in 2024 and similar to 2023 levels. Companies that went public included Pine Labs, FinanceBuddha, Groww and Seshaasai. Despite slower exits, the ecosystem added three new unicorns, up from two in 2024. Bengaluru remained the leading FinTech hub with 42% of total funding, followed by Mumbai at 29%.
Investor participation stayed active across stages, led by Antler, Blume Venture, Venture Catalysts, Peak XV Partners, Accel, Elevation Capital, SoftBank Vision Fund, Lathe Investment and Sofina.
This article was originally
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