India Strengthens Its Position as World's 3rd-Largest Fintech Hub in H1 2025
- India remains the world’s third-largest fintech startup ecosystem, raising $889 million in H1 2025, with early-stage funding up by 10%.
- Acquisition activity surged with 16 deals, a 45% increase from H1 2024; the largest being Groww’s $150 million acquisition of Fisdom.
- Bengaluru led fintech funding with 55% share, followed by Mumbai at 14%, while Accel and Peak XV emerged as top investors.
India continues to hold its position as the third-largest fintech startup ecosystem globally, trailing only the United States and the United Kingdom, according to a recent report by Tracxn. The country’s fintech sector raised a total of $889 million in the first half of 2025 (H1 2025), showcasing a resilient startup environment despite a temporary dip in overall funding.
Early-stage funding saw a notable rise, reaching $361 millionup 10% from H2 2024 and 9% from H1 2024 highlighting sustained investor confidence in innovation-led, scalable models. The report also noted an uptick in acquisition activity, with 16 fintech acquisitions recorded in H1 2025, marking a 45% increase over H1 2024.
Neha Singh, Co-Founder of Tracxn, stated, “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”.
Among the most significant acquisition deals was Groww’s $150 million acquisition of Fisdom, followed by InCred Money acquiring Stocko for $35 million. Notably, H1 2025 also witnessed the emergence of one new unicorn in the fintech space matching the figure from H2 2024 and outperforming H1 2024, which saw none.
Bengaluru continued to dominate the fintech funding landscape, accounting for 55% of the total funding raised, followed by Mumbai at 14%. This regional leadership further underscores the city’s role as India’s fintech capital.
Peak XV, AngelList, and LetsVenture emerged as the top overall investors. In early-stage funding, Peak XV, Accel, and Bessemer Venture Partners led the charge. Seed-stage investments were dominated by Blume Ventures, Venture Catalysts, and 100Unicorns. Meanwhile, SoftBank Vision Fund, Lathe Investment, and Sofina led in the late-stage rounds.
Accel stood out as the most active VC, participating in 34 funding rounds, while Blume Ventures added seven new startups to its portfolio.
