Indian Fintech Funding Drops Sharply in Q3 as Investor Caution Deepens

Indian fintech funding declined 48 percent in Q3 2025 as investors grew cautious, pushing deal sizes lower and slowing overall deployment.

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Indian Fintech Funding Drops Sharply in Q3 as Investor Caution Deepens

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Indian Fintech Funding Drops Sharply in Q3 as Investor Caution Deepens
Indian fintech funding declined 48 percent in Q3 2025 as investors grew cautious, pushing deal sizes lower and slowing overall deployment.
Fintech investment in India fell 48 percent quarter-on-quarter in Q3 2025 as global risk aversion and valuation concerns led investors to slow deployment. The average deal size dropped to approximately $11.9 million, highlighting selective funding behavior across growth and late-stage companies. Analysts said regulatory uncertainty and muted public-market sentiment contributed to reduced activity. Despite the slowdown, early-stage fintechs in embedded finance and SME credit solutions continued to attract interest. Funding flows are expected to stabilize gradually in early 2026.
Sentinel