Global FinTech Investment Rises 21% In 2025

For the first time in a few years, fintech feels like it’s finding its feet again.

After long stints of uncertain valuations and cautious investors, new stats reveal that global fintech investment actually grew in 2025. According to a report published by Innovate Finance, fintech funding climbed 21% year-on-year to $53bn across 5,918 deals, showing real signs of recovery.

A Strong H2

But when it comes to the growth in fintech funding, it was the second half of the year, H2, which saw a real boost.

Global fintech funding jumped from $20.2bn in the first six months of 2025 to $32.5bn in the second half, a 61% increase. That increase pushed 2025 investment levels well ahead of 2024.

But what made this different was the ratio of deals to investment. Whilst deal volumes dropped, the amount of capital invested actually rose.

As Mark Beeston, Founder & Managing Partner at Illuminate Financial puts it: “Global fintech showed mixed signals in 2025, the data shows capital holding steady while overall deal count fell, confirming a structural shift toward fewer, higher-value investments rather than a cyclical recovery.

“The market now rewards sustainable profit potential over pure headline growth at any cost.”

The US Dominates Whilst The UK Holds Steady In Second Place

Unsurprisingly, when it came to geographical comparisons, the US once again dominated fintech, raising $25.1bn across 2,449 deals. On top of this, 15 of the top 20 biggest global funding rounds went to US companies. When it came to the sectors attracting the most investment from the top 20, payments came out top with 5 of the 20 top deals, followed by crypto claiming 4 and SME banking claiming 3.

The UK came in second place globally, raising an impressive $3.6bn across 534 deals, just ahead of India on $3.4bn. Interestingly however, the UK’s deal count was more than double India’s – showing that investors were making smaller and more conservative investments across a wider range of companies.

And whilst total investment sat below 2023 levels, still, UK fintech funding did rise 11% in the second half of 2025, showing that investor confidence may finally be back.

Top Regions Driving Investment

When it came to the top 5 regionals by investment, the UK and India were followed by the UAE ($2.5 billion), and Singapore ($2 billion). Brazil, Canada, and Mexico also climbed the ranks, showing strong capital growth in the Americas.

Interestingly, over the past 10 years, only the US, UK, India, and Germany have consistently appeared in the global Top 10 when it comes to fintech funding.

And whilst investment has become more spread out globally, the top ten markets still account for 82% of global fintech funding in 2025, showing that capital is still being allocated within limited areas, though this is improving.

Bigger Cheques, Fewer Investments

If there was one constant through 2025 it’s that whilst investment was up overall, the trend pointed towards bigger cheques for fewer companies.

When it came to the biggest fintech funding rounds of the year across the world, these included: Binance ($2 billion, UAE), Ramp ($1 billion, US), Kraken ($800 million, US), FNZ ($650 million, UK), and PhonePe ($600 million, India).

Many of these raises solidified countries’ places in the top 10, showing how these ‘mega-rounds’ can have a huge influence on rankings.

And whilst funding was up due to these big raises, for many companies, 2025 was a difficult year.

What Is Happening In UK Fintech?

Inside the UK, the pattern was no different. Nearly 60% of all fintech capital raised in 2025 went to just 20 deals. Nine of those were payments companies, showing a real skew in sector.

Key UK deals included FNZ ($650m, Wealth Management), Rapyd ($300m, Payments), Dojo ($190m, Payments & Merchant Acquiring), Quantexa ($175m, Data Analytics), and Fnality ($136m, Payments).

Fundraising By Female Founders Lagged Behind

Despite the overall growth, the recovery has not been evenly shared. Female-led UK fintechs raised just $76m in 2025, 37% lower than the $120m raised in 2024.

Raising capital for female-led businesses continues to be a challenge for founders, and one that needs to be addressed if the industry wants to see continued and diverse growth.

Fintech In 2026 and Beyond

So, what does 2026 hold for the fintech sector? Well, if 2025 is anything to go by, it could be a great year for the sector.

For later-stage startups, capital is clearly flowing freely, with billion dollar deals happening all over the world. For smaller businesses however, the task may be a little bit more difficult.

So, the good news is that fintech is growing, but capital is more selective. Will 2026 keep up the pace? We’ll have to wait and see…