Fintech funding in India climbs 42 pc to $2 billion in first half

The Indian fintech sector raised $2 billion in the first half this year (H1 2026), up 83 per cent from $1.1 billion in H2 2025 and 42 per cent from $1.4 billion in the same period last year, a report showed on Thursday.

However, the number of funding rounds fell to 106, down from 186 in H1 2025 as the sector raised more money with fewer bets, according to Tracxn data.

Late-stage funding surged 331 per cent to $1.6 billion, while seed and early-stage funding rounds declined.

Investors pulled back from new bets even as they wrote bigger checks into proven companies, said the report.

Acquisitions settled at seven in H1 2026, down from 16 a year earlier, pointing to more selective consolidation. Acquirers appear choosier about the assets they take on, not pulling back from acquisition activity altogether.

Two IPOs (Turtlemint and Kissht) reversed H1 2025's zero figure, although down from five IPOs in H2 2025.

Public markets are increasingly becoming a credible exit route for India's FinTech companies, reflecting a maturing path to listing for the sector.

Together, these companies signal that fintech businesses across lending, insurance, and broking are gaining the scale and investor confidence needed to go public, opening up a parallel exit route alongside acquisitions and continued private capital, said the report.

Bengaluru captured 70 per cent of all fintech funding in H1 2026, up sharply from a 31 per cent share in H2 2025.

Mumbai held a distant second with 17 per cent, followed by Gurugram at 9 per cent.

The trend mirrors the broader stage story from H1 2026: just as capital gravitated toward fewer, larger late-stage deals, it also concentrated in a smaller set of cities, with Bengaluru-based companies anchoring the bulk of the half's biggest rounds, said the report.