India continues to be the third largest fintech startup ecosystem in the world, behind the US and the UK
BENGALURU — India continues to be the third largest fintech startup ecosystem in the world, behind the US and the UK, a report said on Friday, adding that the sector raised a total of $889 million in the January-June period (H1 2025).
Early-stage funding stood at $361 million, a 10 per cent rise from H2 2024 and 9 per cent from H1 2024. The sector witnessed 16 acquisitions in H1 2025, a 45 per cent increase from H1 2024, according to the report by Tracxn, one of the world’s largest platforms for tracking startups and private companies.
“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,” said Neha Singh, Co-Founder, Tracxn.
Bengaluru's dominance and the continued emergence of breakout companies reinforce India’s position as a global FinTech powerhouse, she added.
H1 2025 witnessed 16 acquisitions, a 45 per cent increase compared to 11 acquisitions in H1 2024. The highest-valued deal was Fisdom, acquired by Groww for $150 million, followed by Stocko, acquired by InCred Money for $35 million.
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 per cent of total funding, followed by Mumbai at 14 per cent, said the report.
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 seven new companies to its portfolio during the period, the report mentioned.