India emerged as the largest fintech investment destination in the Asia-Pacific region, attracting $2 billion across 101 deals in the first half of 2026, according to KPMG’s Pulse of Fintech H1 2026 report.
India’s fintech funding increased from $1.8 billion across 102 deals in the second half of 2025, allowing the country to buck a broader slowdown across the Asia-Pacific fintech ecosystem. India accounted for a significant share of the region’s $4.6 billion fintech investment across 350 deals during H1 2026.
The performance puts India well ahead of other major fintech markets in the region. South Korea ranked second with $899 million across 31 deals, followed by Singapore with $499 million across 53 deals, Australia with $456 million across 28 deals, and Japan with $204.5 million across 37 deals.
India bucks regional funding slowdownThe wider APAC fintech market saw investment decline from $7.1 billion across 426 deals in H2 2025 to $4.6 billion across 350 deals in H1 2026.
Investment activity was particularly weak in the first quarter, when the region attracted just $1.2 billion, before recovering to $3.4 billion in Q2 2026.
KPMG attributed the softer regional environment to investors reassessing late-stage valuations, changing regulations and geopolitical exposures. Against this backdrop, India continued to attract capital, supported by the strength of its economy and the continued depth of its digital financial services ecosystem.
CRED and KreditBee among region’s biggest dealsIndia was also home to two of the largest fintech deals in the Asia-Pacific region during the first half of the year.
Rewards-focused credit management platform CRED raised $900 million, while lending platform KreditBee secured $280 million.
These transactions placed Indian companies among the largest recipients of fintech capital in ASPAC, alongside Singapore-based payments company Airwallex, which raised $320 million.
The concentration of large deals, however, also highlights an increasingly important trend in fintech funding: capital is becoming more selective and increasingly concentrated in companies that have achieved significant scale.
Fewer deals, bigger focus on mature fintechsAcross the Asia-Pacific region, investors are increasingly prioritising mature fintech companies with proven business models over early-stage businesses focused primarily on growth.
The report pointed to growing corporate interest in technologies related to regulatory compliance, anti-money laundering and know-your-customer processes, while artificial intelligence is emerging as an increasingly important area of investment across financial services.
India is expected to remain attractive for fintech investment because of its large digital economy and expanding financial services ecosystem. However, the next phase of funding is likely to be increasingly driven by companies that can demonstrate stronger economics, sustainable growth and clear use cases for technologies such as AI.
AI, compliance and automation emerge as the next frontierKPMG identified growing investment in AI across areas including AML, operations, software engineering, customer service and employee support.
Financial institutions are also increasingly looking at AI for workflow automation and specialised financial services use cases, rather than broad technology experimentation.
For India’s fintech ecosystem, this could increasingly shift investor attention towards companies building infrastructure and enterprise solutions for banks, NBFCs, insurers and other financial institutions.
The report said India continues to attract solid fintech investment because of the strength of its economy, even as other Asia-Pacific markets experience a more pronounced slowdown.
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