Fintech startups in the country saw a 17% year-over-year drop, raising $1.6 billion in the first nine months of 2025, according to data from Tracxn. Despite this decline, India remained the third-largest fintech startup ecosystem in the world, following the US and the UK.

The latest India FinTech Funding 9M 2025 report shows that early-stage companies have become a positive area in an otherwise weak environment. Early-stage funding increased by 8% year-on-year to $598 million, pointing to continued interest from investors in newer startups.

In contrast, seed-stage funding fell 38% to $129 million, while late-stage funding dropped 23% to $863 million, reflecting a continued slowdown in larger, growth-stage bets.

“India’s fintech ecosystem continues to demonstrate resilience amid a period

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