In the first half of 2025, India’s fintech sector secured its position as the third-largest recipient of startup funding worldwide, following the USA and the UK. The sector raised USD 889 million from January to June 2025, marking a 26% decrease from the latter half of 2024 and a 5% drop from the same period in 2024. Despite this decline, early-stage funding saw a 10% increase, reaching USD 361 million, and there was a notable rise in mergers and acquisitions, with 16 deals recorded.
Investor interest remained strong, particularly in early-stage startups, although seed-stage investments fell to USD 91.2 million, a significant decrease from previous periods. The period also saw the emergence of a new unicorn in the fintech space, although no companies went public. Bengaluru maintained its lead in fintech funding, contributing 55% of the total, followed by Mumbai at 14%.
Top investors in the first half of the year included Bengaluru-based Peak XV, Angel List, and LetsVenture. In early-stage funding, Peak XV, Accel, and Bessemer Venture Partners were prominent, while Blume Ventures, Venture Catalysts, and 100 Unicorns dominated seed-stage investments. Late-stage funding saw significant contributions from SoftBank Vision Fund, Lathe Investment, and Sofina. Accel, a USA-based venture capital firm, led with 34 investment rounds, while Blume Ventures expanded its portfolio with seven new companies.
