Indian Economy News

India's fintech sector ranks third globally in H1 2025 funding round: Tracxn

India’s fintech sector ranked third globally in startup funding during H1 2025, raising Rs. 7,593 crore (US$ 889 million), according to Tracxn’s Geo Semi-Annual India FinTech Report H1 2025. Early-stage funding showed resilience, increasing 10% from H2 2024, rising to Rs. 3,083 crore (US$ 361 million)  and a 9% increase compared to H1 2024. Seed-stage investments were at Rs. 779 crore (US$ 91.2 million) during the period. Tracxn Co-founder, Ms. Neha Singh, noted that steady early-stage investments and growing mergers and acquisitions (M&A) activity highlight sustained investor interest in scalable, innovation-led models.

M&A activity grew 45% YoY with 16 deals in H1 2025, including Groww’s Rs. 1,281 crore (US$ 150 million) acquisition of Fisdom and InCred Money’s Rs. 299 crore (US$ 35 million) purchase of Stocko. Although no initial public offerings (IPOs) occurred in this period, one new unicorn emerged, following none in H1 2024 and one in H2 2024. Bengaluru remained the fintech funding hub, attracting 55% of total investments, followed by Mumbai with 14%. Key investors included Accel, which led with 34 deals, alongside Bessemer Venture Partners and Peak XV. The Reserve Bank of India (RBI) has urged fintech firms to pursue responsible innovation within regulatory frameworks, signalling a more accommodative stance after earlier crackdowns. RBI also eased certain restrictions, such as lifting risk-weight requirements on loans to top-rated non-banking financial companies, further encouraging sector growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.