By Sayan Sen
India鈥檚 fintech sector raised $889 million in equity funding in the first half of 2025, marking a 26% decline from the $1.2 billion raised in H2 2024 and a 5% drop from the $936 million recorded in H1 2024, according to Tracxn鈥檚 semi-annual report.
This is the lowest half-yearly funding total since H2 2020 and part of a broader downtrend in funding across emerging markets. Despite these numbers, India currently ranks third in the sector, trailing behind the US and the UK.
The sector saw a steep 44% year-on-year drop in the number of funding rounds, with only 109 deals closed in H1 2025, down from 195 in the same period last year.
Late-stage funding was the most affected, falling 41% from H2 2024 and 6% from H1 2024 to reach $437 million.
Seed-stage startups raised $91.2 million鈥攄own 27% from the previous half鈥攁nd early-stage startups saw a modest 10% increase to $361 million.
Bengaluru remained the epicenter of India鈥檚 fintech activity, attracting 55% of the total funding, followed by Mumbai at 14%.
Top funding deals
The top funding round in H1 2025 was raised by CRED, which secured $75 million in a Series G round in May 2025. The round was led by GIC, Sofina, and RTP Global, along with two other investors.
The second-largest round was by InsuranceDekho, which raised $70 million in a Series C round in March 2025, backed by MUFG, Beams Fintech Fund, and BNP Paribas Cardif. Cashfree, Zolve and Zeta also raised more than $50 million each in H1.
The largest disclosed acquisition was the $150 million buyout of investment advisory platform Fisdom by Groww. InCred Money鈥檚 $35 million acquisition of stock analysis platform Stocko was the second-largest M&A deal in the space.
On the investment side, United States-based Accel led the most number of investment rounds at 34, reaffirming its aggressive stance in the Indian fintech market. India鈥檚 Blume Ventures added seven new companies to its portfolio, showing continued support for early-stage bets.
Who invested the most?
Peak XV Partners, formerly Sequoia Capital India, emerged as the most active overall investor in the ecosystem. It was also among the top three early-stage investors, along with Accel and Bessemer Venture Partners.
For late-stage investments, SoftBank Vision Fund, Lathe Investment, and Sofina led the charge. Blume Ventures, Venture Catalysts, and 100Unicorns dominated the seed-stage landscape.
Notably, first-time investors continued to decline sharply. Their count dropped 41% year-on-year, reflecting growing investor caution amid macroeconomic uncertainty.
No fintech company went public in the first half of 2025 and only one new unicorn emerged in the sector: Juspay.