As per the report, India ranked third globally, trailing only the United States and the United Kingdom

Indian fintech sector raised USD 889 million in the first six months of 2025, a drop of 26 per cent from USD 1.2 billion of H2 2024 and a five per cent slide from USD 936 million seen a year ago, according to a report by market intelligence platform Tracxn.

As per the report, India ranked third globally, trailing only the United States and the United Kingdom.

"While the Indian fintech sector has seen a temporary dip in funding, the steady momentum in early-stage investments and growing acquisition activity indicate that investor interest remains strong, particularly in scalable, innovation-led models," Neha Singh, Co-Founder of Tracxn, said. 

Bengaluru's dominance and the continued emergence of breakout companies reinforce India's position as a global fintech powerhouse, Singh added.

Funding trends across stages in H1 2025 revealed a nuanced landscape for India's fintech sector as early-stage funding fared better than seed-stage and late-stage infusions. Seed-stage startups raised USD 91.2 million, a fall of 27% from H2 2024 (USD 126 million) and 33% from H1 2024 (USD 137 million). In striking contrast, early-stage funding saw a resurgence with USD 361 million raised. This marked a 10% increase over USD 329 million in H2 2024 and a 9% rise from USD 333 million in H1 2024.