London is one of the many fintech hubs that is looking for fintech IPOs in 2026.
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If you ask chatbots why fintech funding is surging in 2026, they usually mention the artificial intelligence (AI) boom. Funny how that works.
There is no doubt that AI fever among investors has yet to break, despite several years of heated speculation about a bubble. AI-related startups accounted for roughly 90% of global venture funding in February, with U.S.-based firms dominating the landscape, raising US$174 billion in that month alone. Fintech firms that were once known for their capabilities in payments, digital banking, or financial infrastructure have transformed into AI startups.
But AI is just one part of why the fintech funding pipeline in the first quarter of the year has been robust.
Big-Ticket Funding Rounds
The first quarter of 2026 has been notable for its many nine-digit fintech funding rounds. Growth and late-stage startups raise nine-digit funding rounds ($100 million+) primarily to fuel aggressive expansion, maintain market leadership, and prepare for liquidity events like an IPO or acquisition. Unlike early-stage startups that raise money to prove their concept, mature startups have already proven their model and focus on scaling operations, acquiring competitors or expanding globally.
There have been more than 10 funding rounds thus far this year of more than $100 million. The biggest thus far is digital savings platform Vestwell’s $385 million Series D, closely followed by fintech security firm Cloak’s $375 million Series B. Also notable: the $250 million Series C round of Rain, a stablecoin-focused payments infrastructure platform, Hong Kong-based digital bank WeLab’s $220 million Series D and Dubai-based Islamic bank Mal’s $230 million seed funding round.
Among these companies, Mal seems to be leaning the hardest into AI. The company claims to be the UAE’s
In a LinkedIn post, Cloaked gives a pretty persuasive explanation for why they have attracted investors’ attention. “The internet was built to collect, expose, and profit from your personal data. We think that’s broken—and we’re building the tools to fix it,” the company said.
But Cloaked couldn’t resist slipping AI into the news release about their funding round, which is entitled, “Cloaked Raises $375 Million to Fight for Privacy in the Age of AI.”
Europe rising
While the U.S. leads in overall fintech funding rounds this year of more than $100 million, Europe is not far behind. And by the estimates of hedge fund Finch Capital, London has become the world’s top fintech hub, overtaking San Francisco and New York. According to data published in March, European fintech funding grew 37% between 2022 and 2025, while investment in top U.S. hubs declined 13%, reaching an equivalent 40 billion euros each.
One of the biggest European fundraising rounds of the year so far involves the ascendant UK challenger bank Allica, which focuses on the SME market. Allica Bank achieved unicorn status in February by securing $155 million in Series D funding, valuing the company at nearly $1.2 billion. The company plans to use the funds to boost lending, enhance technology, and expand market share.
Allica has a strong niche focusing on UK SMEs, which have been chronically underbanked since the 2008-09 financial crisis. Tougher regulatory requirements after the crisis have caused traditional banks to retreat from the SME market, perceived as overly high risk. But for Allica it is a significant opportunity. According to the British Business Bank’s Small Business Finance Markets 2025/26 report, gross SME bank lending increased by 9% to £68 billion in 2025.
Other key funding rounds in Europe in the first quarter occurred on the European continent. The Germany-based investment API provider Upvest raised a €77.5m equity round led by Sapphire Ventures and Tencent, with an additional €30.2m in debt to expand its infrastructure.
And of course, some European fintech startups raised money by positioning themselves as AI innovators. Startups like Profluo (accounting automation) and AntiDote Legal (€4.1M seed) are gaining traction using AI for financial operations and legal tech.
Asia dormant
In contrast to the U.S. and Europe, Asia’s fintech funding has been more subdued. The region is experiencing a lingering fintech winter in which investors are highly selective, favoring mature firms with clear paths to profitability rather than rapid expansion. The biggest markets in the region, China, India, and Indonesia, have little remaining low-hanging fruit to pluck and are characterized by varying rates of intense competition.
While China and India both provide viable exit routes for fintech startups, Southeast Asia is less straightforward. Unlike the unified China or India markets, Southeast Asia has highly fragmented regulatory environments and many different currencies. It is challenging for startups in the region to develop a compelling growth story required for triumphant exits. Consider that two of the most successful tech startups in the region with fintech capabilities, Grab and Sea, both went public in the United States.
It is telling that the biggest Asian fintech funding round of the year is WeLab’s $220 million Series D. WeLab is the most successful of Hong Kong’s digital banks, having reached profitability last year and with a growing presence in both mainland China and Southeast Asia. For investors, WeLab might not be a sure thing, but it is pretty close. The company has been a digital bank since 2020 and operating as a fintech provider since 2013.
Exit Plans
Given the high number of late-stage fintech startups that want exposure to global investors, U.S. and UK capital markets are set to benefit from forthcoming IPOs. While companies like Revolut and Stripe have not yet filed for IPOs—and indeed have not even provided a rough timeline to investors—it would be surprising if they did not at least pursue either dual New York-London listings or listing in one of those locations eventually. Both firms see the U.S. as integral to their future growth.
UK challenger bank Monzo is also weighing its options. It may go public on the London Stock Exchange or in the U.S.
We would not be surprised to see more Asian fintechs also list in the U.S., following the path Sea and Grab have taken. Singapore’s stock exchange does not offer the same breadth of investor exposure or prestige. While the Hong Kong IPO market is an attractive option for Chinese firms, that is less true for companies not focusing on China’s market.
To inflate valuations, some firms will inevitably talk up their AI capabilities. Some of the larger startups may make strategic acquisitions that they believe will give them an AI edge.
Yet ultimately, fintechs best positioned for blockbuster IPOs will be those that have proven their path to profitability, with or without AI.