Bengaluru, October 10 (IANS). India has become the world’s third largest fintech startup ecosystem and has managed to raise funding of $1.6 billion in the first nine months of 2025. This information was given in a report on Friday.
According to data from market intelligence platform Traxon, India is now behind only the US and UK in terms of startup funding, showing the growing importance of India’s fintech sector globally.
Early stage startups have raised $598 million in funding so far in 2025, up from the $555 million figure for 2024, indicating that investor confidence remains in the Indian fintech sector.
However, late-stage funding has declined to $863 million in the first nine months of 2025, from $1.2 billion in the same period in 2024. With this, the seed-stage funding has come down to $129 million.
The two startups have managed to raise funding of over $100 million in the review period, with Groww raising $202 million in its Series F round, while Weaver Services has raised $170 million.
There were 23 acquisitions in the period, a slight increase from the previous year, with the largest acquisition being Diginex’s $2 billion acquisition of Resultix.
Bengaluru continues to dominate as the primary hub of fintech funding, accounting for 52 per cent of total investments, while Mumbai is in second place with 22 per cent.
“India’s fintech ecosystem is performing strongly despite a slowdown in funding,” said Neha Singh, co-founder of Traxon.
“The continued activity in early-stage startups and the rise of new unicorns reflects investors’ continued confidence in the long-term potential of the sector,” he said.
“The dominance of Bengaluru and Mumbai as major innovation hubs reflects the maturity of India’s startup ecosystem,” Singh added.
–IANS
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