Bengaluru, Oct 10 (NationPress) India has risen to become the world’s third-largest FinTech startup ecosystem, accumulating $1.6 billion in funding during the first nine months of 2025, according to a recent report.

Trailing only behind the US and UK in funding, this highlights the increasing importance of India’s FinTech sector on the global stage, as per data from Tracxn, an AI-driven private market intelligence platform.

Funding for early-stage startups has shown growth, bringing in $598 million, a slight rise from $555 million in 2024, indicating continued investor trust in burgeoning companies.

Conversely, late-stage funding dropped to $863 million from $1.2 billion in the same period last year, while seed-stage funding also saw a decrease, landing at $129 million.

Nonetheless, the sector celebrated two significant funding rounds exceeding $100 million, specifically Groww’s $202 million Series F and Weaver Services’ $170 million raise.

Moreover, there were 23 acquisitions noted, a minor increase from the previous year, with the most notable being the $2 billion acquisition of Resulticks by Diginex.

The period also marked one IPO -- Seshaasai -- and the introduction of two new unicorns, matching the count from 9M 2024.

Bengaluru remained the leading hub for FinTech funding, claiming 52 percent of total investments, with Mumbai at 22 percent.

Neha Singh, Co-Founder of Tracxn, remarked, “India’s FinTech ecosystem continues to showcase resilience during a time of funding moderation.”

“The ongoing activity at the early stage and the rise of new unicorns underline persistent investor confidence in the sector’s long-term prospects,” she added.

“The dominance of Bengaluru and Mumbai as primary innovation centers illustrates the sophistication of India’s startup ecosystem. As the sector advances, we anticipate deeper technological innovations and stronger engagement from both domestic and international investors,” Singh concluded.