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The fintech sector continued to lead startup funding in India in 2025, attracting around $2.5 billion across 120 deals, despite a noticeable decline in the number of deals compared to the previous year.

Overall startup funding in India fell by about 8% year-on-year to approximately $11 billion in 2025, as investors maintained a cautious approach. Investment flows were directed toward companies with clear business models, more stable profitability, and stronger capital discipline.

While fintech accounted for the largest share of total funding, its deal count declined from 162 deals in 2024 to 120 deals in 2025, indicating a shift toward fewer, larger investments. The average deal size in fintech rose to $20.8 million, up nearly 75% year-on-year, ranking among the highest across all sectors.

In contrast, e-commerce startups led in the number of deals with 206 transactions but recorded smaller investment sizes per deal. The largest fintech funding rounds in 2025 included Zolve, which raised $251 million, and Grow, which secured $202 million ahead of its planned public listing.

The investment focus reflects the growing adoption of consumer credit in India, driven by increased credit card usage, consumer lending models, and SME-focused lending platforms. Additionally, financial infrastructure, payment systems, digital wealth management, and insurtech companies captured significant funding, supporting the expansion of digital financial services and financial inclusion.

As 2026 begins, India’s fintech sector is expected to enter a more mature phase, prioritizing execution quality, risk management, regulatory compliance, and efficient capital utilization, amid heightened regulatory scrutiny and increasing competition with traditional financial institutions and tech giants.