Fintechs cornered $2.4 billion investments in 2025 as funding moderated

Fintech funding stayed muted in 2025 at $2.4 billion, with fewer deals, IPOs and acquisitions, reflecting sustained investor caution after the 2021 peak

Funding to fintechs has moderated over the past three years, with the sector attracting investments of $2.4 billion in 2025, marginally higher than $2.3 billion in 2024. This is broadly in line with 2023, which also saw cumulative investments of about $2.4 billion, and marks a sharp fall from the 2021 peak of $8.3 billion.

 

In 2025, the number of funding rounds fell to 259 compared with 374 and 375 in 2024 and 2023, respectively, data from market intelligence platform Tracxn show.

 

In 2025, investors infused $1 billion in late-stage startups, $1.2 billion in early-stage startups, and $177 million in seed-stage companies.

 

The year saw three new unicorns compared with two in 2024.

 

2025 witnessed four initial public offerings (IPOs) compared with eight in the previous year. Pine Labs, FinanceBuddha, Groww and Seshaasai were the companies that went public in 2025.

 

The year also saw 22 acquisitions, a drop of 21 per cent compared with 28 acquisitions in 2024. The acquisition of Fisdom by wealth management platform Groww was the largest deal by value at $150 million.