According to Tracxn's Geo Semi-Annual India FinTech Report H1 2025, India's fintech sector received the third most startup funding globally in H1 2025, raising Rs. 7,593 crore (US$ 889 million).

Early-stage funding showed resilience, rising 10% from H2 2024 to Rs. 3,083 crore (US$ 361 million), up 9% from H1 2024. During the period, seed-stage investments totaled Rs. 779 crore ($91.2 million).

Key Highlights

• India raised $889 million in fintech funding in H1 2025, ranking third globally behind the United States and the United Kingdom.
• Following a slight sector slowdown, early-stage fintech investments increased by 10% to $361 million in the second half of 2024.

Tracxn's co-founder, Neha Singh, stated that consistent early-stage investments and increased mergers and acquisitions (M&A) activity show investor interest in scalable, innovation-led models.

M&A activity increased by 45% year on year, with 16 deals in H12025, including Groww's Rs. 1,281 crore (US$ 150 million) acquisition of Fisdom and InCred Money's Rs. 299 crore (US$ 35 million) purchase of Stocko.

Although no initial public offerings (IPOs) took place during this period, one new unicorn emerged, following none in H1 2024 and one in H2 2024. Bengaluru remained the fintech funding hub, attracting 55% of total investments, followed by Mumbai at 14%. Accel was the most active investor, with 34 deals, followed by Bessemer Venture Partners and Peak XV.

Also Read: RBI to Ban Lock-in FDs Abroad, Tighten Overseas Remittance Rules

The Reserve Bank of India (RBI) has urged fintech firms to pursue responsible innovation within regulatory frameworks, indicating a more accommodating stance following previous crackdowns. The RBI also relaxed some restrictions, such as removing risk-weight requirements on loans to top-rated non-banking financial institutions, thereby promoting sector growth.