Indian Fintech Funding Report - Jan-Dec 2025

Indian Fintech Funding Report

Jan-Dec 2025

What’s Inside?

Indian fintech funding reached USD 1.63Bn in 2025 across 77 startups, marked by fewer but larger deals. Investor activity remained uneven through the year, with capital concentrating in scale-ready platforms – particularly in lending-led models.

Top Funded Segment:

Lending dominated with USD 712M, emerging as the clear anchor of investor confidence. Funding was driven by strong momentum across MSME, secured, and data-driven credit platforms, reaffirming conviction in credit-led fintech fundamentals.

Other Highlights:

• Series B emerged as the most funded stage, signalling investor preference for proven, growth-stage business models.
• Payments and WealthTech saw selective, deal-driven funding, while Insurtech and Regtech remained cautious with fewer high-value transactions.
• Enabler platforms across automation, agentic AI, and fintech infrastructure witnessed opportunistic investments, reflecting growing demand for scalable, enterprise-grade solutions.
• The Top 10 deals spanned lending, payments, wealthtech, and enablers, highlighting diversification beyond pure consumer fintech narratives.

Funding Geography:

Bengaluru led with ~USD 755M, reinforcing its position as India’s fintech capital, followed by Mumbai (~USD 400M) and Gurugram (~USD 169M)—showcasing continued concentration of capital in mature startup ecosystems.

Regulatory Focus: RBI Capital Adequacy Amendments (2026):

The report deep-dives into RBI’s revised prudential norms, introducing stricter treatment of unrated foreign exposures, formal recognition of IFSC-based credit ratings, and tighter risk-weighting—reshaping how banks and AIFIs approach cross-border and IFSC-linked lending.

Indian Fintech Funding Report - Jan-Dec 2025