Ranking as the third-highest funded country globally, behind only the US and UK, India’s finTech startups raised $1.6B in 9M 2025. But, the fintech funding marked a 17% decline compared to $1.9B in 9M 2024 and a 20% drop from $2.0B in 9M 2023, underscoring the continuation of funding winter, according to market intelligence platform Tracxn’s latest India FinTech Funding 9M 2025 report.

Funding trends showed mixed performance across stages in 9M 2025. Seed Stage funding witnessed a total of $129M, marking a decline of 38% compared to $208M in 9M 2024 and 32% from $189M in 9M 2023. Early-stage funding, on the other hand, saw a rise of 8% and 11%, reaching $598M in 9M 2025 compared to $555M and $540M in 9M 2024 and 9M 2023, respectively. Late stage raised $863M, reflecting a drop of 23% from $1.2B in 9M 2024 and 31% from $1.3B in 9M 2023.

Neha Singh, Co-Founder of Tracxn, said, “India’s FinTech ecosystem continues to demonstrate resilience amid a period of funding moderation. While overall investments have seen a dip, the consistent activity at the early stage and the emergence of new unicorns highlights sustained investor confidence in the sector’s long-term potential.”

Bengaluru and Mumbai continue to be key innovation hubs, says the report, underlining the maturity of India’s startup ecosystem. “As the industry evolves, we expect to see increased focus, deeper technological innovation, and stronger participation from both domestic and global investors.”

Decline in $100M+ funding rounds but rise in exits

9M 2025 witnessed 2 $100M+ funding rounds, compared to 3 such rounds in 9M 2024 and 4 in 9M 2023. Notable among these were Groww, which raised $202M in a Series F round, and Weaver Services, which secured $170M in an Unattributed round.

In terms of exits, 23 acquisitions took place during 9M 2025, a 5% rise from 22 in 9M 2024 and a 4% decline compared to 24 in 9M 2023. The largest deal was Resulticks’ $2.0B acquisition by Diginex. This became the highest valued acquisition in 9M 2025, followed by Fisdom’s $150M acquisition by Groww.

Major decline in IPOs

In terms of market activity, the sector recorded 1 IPO in 9M 2025, a decline of 86% and 75% compared to 7 in 9M 2024 and 4 in 9M 2023, respectively. Seshaasai was the only company to go public in 9M 2025.

There were 2 unicorns created in 9M 2025, the same as in 9M 2024, while no new unicorns emerged in 9M 2023.

FinTech companies based in Bengaluru continued to dominate the funding landscape, accounting for 52% of the total funding in India during 9M 2025, followed by Mumbai at 22%.

Venture Catalysts, Antler and Fundamentum were the top seed-stage investors; Peak XV Partners, Bessemer Venture Partners and GMO Venture Partners led early-stage investments; while SoftBank Vision Fund, Sofina and Lathe Investment were the top late-stage investors.