India Ranks 3rd Globally in FinTech Startup Funding, Raising $889M in H1 2025: Tracxn

Tracxn, a leading market intelligence platform, has launched its Geo Semi-Annual India FinTech Report H1 2025. This proprietary report provides comprehensive insights into the Indian FinTech ecosystem, funding raised by startups, developments across stages, investor interest, and the key trends shaping the landscape in the first half of 2025.

According to the report, the FinTech sector raised $889M in H1 2025, a 26% decline from $1.2B in H2 2024 and a 5% drop from $936M in H1 2024. India. Despite these fluctuations, India ranked third globally,  trailing only the United States and the United Kingdom. 

Commenting on the findings of their report, Neha Singh, Co-Founder, Tracxn, said, “While the Indian FinTech sector has seen a temporary dip in funding, the steady momentum in early-stage investments and growing acquisition activity indicate that investor interest remains strong, particularly in scalable, innovation-led models. Bengaluru's dominance and the continued emergence of breakout companies reinforce India’s position as a global FinTech powerhouse.”

Funding trends across stages in H1 2025 reflected a nuanced landscape for India’s FinTech sector. Seed-stage startups raised $91.2M, marking a decline of 27% from $126M in H2 2024 and 33% from $137M in H1 2024. In contrast, early-stage funding saw a resurgence, with $361M raised, a 10% increase over $329M in H2 2024 and a 9% rise from $333M in H1 2024, highlighting renewed confidence in startups with initial traction. However, late-stage funding dropped to $437M, a 41% decline from $745M in H2 2024 and 6% from $467M in H1 2024.

H1 2025 witnessed 16 acquisitions, a 45% increase compared to 11 acquisitions in H1 2024, and a 6% decline from 17 acquisitions in H2 2024. The highest-valued deal was Fisdom, acquired by Groww for $150M, followed by Stocko, acquired by InCred Money for $35M.

While IPO activity remained muted with no FinTech companies going public, one new unicorn emerged in the Indian FinTech space during the period, consistent with H2 2024, but an improvement over H1 2024, which saw none.

Bengaluru continued to lead India’s FinTech funding landscape, accounting for 55% of total funding, followed by Mumbai at 14%.

The overall top investors in H1 2025 were Peak XV, Angel List and LetsVenture. In the early stage, which saw a surge in funding, the leading investors were Peak XV, Accel and Bessemer Venture Partners. Blume Ventures, Venture Catalysts and 100Unicorns led investments at the seed stage, while SoftBank Vision Fund, Lathe Investment and Sofina were the top investors in the late-stage round.

Among venture capital firms, U.S.-based Accel led the highest number of investments with 34 rounds, while India-based Blume Ventures added 7 new companies to its portfolio during the period.