Venture funding for digital lending startups in India has fallen by 21.23% this year, with a funding of $324.8 million from January to September 2025, as compared to $412.4 million during the same period last year, as per data sourced from Tracxn. This also throws light on the broader slowdown of domestic VC activity despite the surge experienced in global markets riding on the backs of AI and hard tech investments.

Contrary to reports of a 50% fall, the numbers show a more measured decline. Of the 154 fintech deals reported in the period, only about 50 involved digital lenders. It varies from consumer lending platforms such as Fibe , Kissht and KreditBee to credit marketplaces such as BankBazaar , and SME-focused lenders such as Flexiloans and Indifi.

Furthermore, the VC funding for

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