Fintech startups in the country saw a 17% year-over-year drop, raising $1.6 billion in the first nine months of 2025, according to data from Tracxn. Despite this decline, India remained the third-largest fintech startup ecosystem in the world, following the US and the UK.
The latest India FinTech Funding 9M 2025 report shows that early-stage companies have become a positive area in an otherwise weak environment. Early-stage funding increased by 8% year-on-year to $598 million, pointing to continued interest from investors in newer startups.
In contrast, seed-stage funding fell 38% to $129 million, while late-stage funding dropped 23% to $863 million, reflecting a continued slowdown in larger, growth-stage bets.
“India’s fintech ecosystem continues to demonstrate resilience amid a period of funding moderation,” Neha Singh, Co-founder of Tracxn, said. “The consistent activity at the early stage and emergence of new unicorns highlight sustained investor confidence in the sector’s long-term potential.”
Activity remains steady
The report further mentioned how 2025 saw two $100 million+ rounds, as compared to three during the same period last year. Investment platform Groww led with a $202 million Series F round, while Weaver Services secured $170 million in an unattributed round. The period also saw 23 acquisitions, up by one from last year, with the largest deal being Diginex’s $2 billion buyout of Resulticks. Bengaluru-based wealthtech platform Groww also made headlines by acquiring Fisdom for $150 million. Digital security firm Seshaasai was the only fintech company that went for IPO during this period.
Mumbai and Bengaluru on the top
Fintech firms in Bengaluru and Mumbai continued to attract the lion’s share of investments, accounting for 52% and 22% of total funding, respectively. The two cities together reaffirmed their position as India’s top innovation hubs for fintech. The sector also saw the addition of two new unicorns in this period, the same as last year.
Top early-stage backers for this period were Peak XV Partners, Bessemer Venture Partners, and GMO Venture Partners. SoftBank Vision Fund and Sofina were among the biggest investors in late-stage rounds.