Indian Fintech Funding Report August 2025

Indian Fintech Funding Report

August 2025

What’s Inside?

India’s fintech ecosystem raised $261M across 14 startups in August 2025—Lending led the charge, with Bangalore continuing as the top-funded city.

Top Funded Segment:

Lending dominated with $146M, driven by Vistaar Finance’s $99M Series E and steady traction in MSME credit models.

Other Highlights:

UnifyApps, TransBnk & WizCommerce together secured $83M, underscoring investor confidence in workflow automation and transaction banking solutions.
Kiwi (Payments) raised $24M Series B, signaling continued demand for consumer-focused payment products.
Shivalik Small Finance Bank & CredRight attracted mid-size rounds, highlighting momentum in niche lending and co-lending platforms.
Mitigata (Insurance) brought in $5.9M, reflecting interest in cyber insurance distribution.
Funding was concentrated in Series B+ rounds, with seed activity limited to sub-$3M deals, indicating cautious early-stage bets.
Bangalore led with $148M, followed by Gurugram ($55M) and Pune ($19M)

Regulatory Focus

RBI’s Co-Lending Arrangements (CLA) Directions, 2025 introduced a uniform framework across lenders—capping Default Loss Guarantee (DLG) at 5%, mandating 10% risk retention, escrow requirements, and real-time reporting—aimed at boosting transparency, risk-sharing, and financial inclusion.

Indian Fintech Funding Report August 2025