India has emerged as the world’s third-largest FinTech startup ecosystem, raising $1.6 billion in the first nine months of 2025, a new report said on Friday.
The country trailed only the US and the UK in terms of funding, underlining the growing significance of India’s FinTech sector globally, according to data compiled by Tracxn, an AI-powered private market intelligence platform.
Early-stage startups saw an uptick in funding, attracting $598 million, compared to $555 million in 2024, signalling sustained investor confidence in emerging companies.
Late-stage funding, however, fell to $863 million from $1.2 billion in 9M 2024, and seed-stage funding also recorded a decline to $129 million.
Despite this, the sector witnessed two major $100 million-plus funding rounds, including Groww’s $202 million Series F round and Weaver Services’ $170 million raise.
The period also saw 23 acquisitions, a slight increase from the previous year, with the largest being the $2 billion acquisition of Resulticks by Diginex.
In addition, the sector recorded one IPO -- Seshaasai -- and welcomed two new unicorns, the same number as in 9M 2024.
Bengaluru continued to dominate as the primary hub for FinTech funding, accounting for 52 per cent of the total investments, followed by Mumbai at 22 per cent.
Commenting on the trends, Neha Singh, Co-Founder of Tracxn, said, “India’s FinTech ecosystem continues to demonstrate resilience amid a period of funding moderation.”
“The consistent activity at the early stage and the emergence of new unicorns highlight sustained investor confidence in the sector’s long-term potential,” she said.
“The dominance of Bengaluru and Mumbai as key innovation hubs underlines the maturity of India’s startup ecosystem. As the industry evolves, we expect deeper technological innovation and stronger participation from both domestic and global investors,” Singh added.
