India has become the world’s third-largest fintech startup ecosystem, raising USD 1.6 billion in the first nine months of 2025. Bengaluru leads with 52 per cent of investments, while early-stage startups attract strong investor confidence despite a dip in late-stage funding
PM Modi at Global FinTech event in Mumbai. Filepic
India, since the last few years, has been majorly focusing on its digital infrastructure. As a result, the country has now emerged as the world’s third-largest FinTech startup ecosystem. As reported by news agency IANS, India raised USD 1.6 billion in the first nine months of 2025, a new report said.
India is now only behind the United States of America and the UK in terms of funding. India’s position underlines the growing significance of the FinTech sector globally, according to data compiled by Tracxn, an AI-powered private market intelligence platform.
Moreover, the early-stage startups also saw an uptick in funding, attracting USD 598 million, compared to USD 555 million in 2024, signalling sustained investor confidence in emerging companies, as reported by news agency IANS.
However, the late-stage funding fell to USD 863 million from USD 1.2 billion in 9M 2024, while the seed-stage funding also recorded a decline to USD 129 million.
Despite this, the fintech sector witnessed two major USD 100 million-plus funding rounds, including Groww’s USD 202 million Series F round and Weaver Services’ USD 170 million raise.
The period also saw 23 acquisitions, a slight increase from the previous year, with the largest being the USD 2 billion acquisition of Resulticks by Diginex.
News agency IANS also reported that the fintech sector recorded one IPO – Seshaasai. Furthermore, the sector also welcomed two new unicorns, the same number as in 9M 2024.
Bengaluru, being the hub of fintech startups, continued to dominate, 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 that “India’s FinTech ecosystem continues to demonstrate resilience amid a period of funding moderation,” as cited by news agency IANS.
“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 added.
She also asserted, “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,” as per IANS.
(With inputs from IANS)
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