Fintech startups raised $1.6 billion during the first nine months of 2025, marking a 17 per cent decline from $1.9 billion in the same period of 2024.
(Source: freepik)
India has emerged as the world’s third-largest fintech startup ecosystem, even as funding into the sector continues to moderate. According to data from the market intelligence platform Tracxn, fintech startups raised $1.6 billion during the first nine months of 2025, marking a 17 per cent decline from $1.9 billion in the same period of 2024 and a 20 per cent drop from $2 billion during the first nine months of 2023.
During the nine months, India was ranked the third-highest funded country globally, behind only the US and the UK in the fintech domain.
According to the data, funding trends exhibited mixed performance across stages over the nine months. Seed-stage funding witnessed a total of $129 million, marking a decline of 38 per cent compared to $208 million in nine months of 2024 and 32 per cent from $189 million in nine months of 2023.
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Early-stage funding, on the other hand, saw a rise of 8 per cent and 11 per cent, reaching $598 million during nine months in 2025 compared to $555 million and $540 million during nine months of 2024 and 2023, respectively. Late Stage raised a total funding of $863 million, reflecting a drop of 23 per cent from $1.2 billion in nine months of 2024 and 31 per cent from $1.3B in nine months of 2023.
Commenting on the findings, 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.”
“The continued dominance of Bengaluru and Mumbai as key innovation hubs underlines the maturity of India’s startup ecosystem. As the industry evolves, we expect to see increased focus, deeper technological innovation, and stronger participation from both domestic and global investors,” she added.
The January-September period of 2025 witnessed two over $100 million funding rounds, compared to three such rounds during the nine months of 2024 and four during the nine months of 2024. Notable among these were Groww, which raised $202M in a Series F round, and Weaver Services, which secured $170M in an unattributed round.
In terms of exits, 23 acquisitions took place during the period in 2025, a 5 per cent rise from 22 during the corresponding period last year and a 4 per cent decline compared to 24 during the nine months in 2023. The largest deal was Resulticks’ $2 billion acquisition by Diginex. This became the highest valued acquisition in the January-September period of 2025, followed by Fisdom’s $150 million acquisition by Groww.
In terms of market activity, there was only one IPO of Seshaasai during the period this year while in terms of fintech hotspots, Bengaluru continued to dominate the fintech funding landscape, accounting for 52 per cent of the total funding in India during the nine-month period, followed by Mumbai at 22 per cent.
Among the top seed stage investors were Venture Catalysts, Antler and Fundamentum, while Peak XV Partners, Bessemer Venture Partners and GMO Venture Partners led early-stage investments. SoftBank Vision Fund, Sofina and Lathe Investment were the top late-stage investors.
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