Funding for India’s fintech startups jumps, but fewer companies get the money – CNBC TV18

India’s FinTech sector attracted $2 billion in funding during the first half of 2026, up 42% from a year ago and 83% higher than the preceding six months, according to a report by Tracxn. However, the rise was largely driven by late-stage fundraising, while investments in seed and early-stage startups continued to weaken.

The sector raised more capital despite attracting fewer investments. Funding rounds fell to 106 in H1 2026 from 186 a year earlier, reflecting a slowdown in deal activity even as larger companies secured bigger cheques.

Late-stage deals dominate
Late-stage startups accounted for most of the funding, raising $1.6 billion during the period, up 331% from H2 2025 and 140% from H1 2025.

The half witnessed three funding rounds of over $100 million, compared with two in each of the previous two six-month periods. CRED topped the list with a $900 million Series H round, followed by KreditBee with $220 million and Weaver with $156 million.

In contrast, seed-stage funding declined 19% from the previous half and 42% from a year ago to $68.6 million, while early-stage funding dropped 41% sequentially and 43% year-on-year to $367 million.

IPOs return, acquisitions slow

India’s FinTech sector saw two IPOs in H1 2026 after recording none in the year-ago period, although the number was lower than the five IPOs seen in H2 2025. Turtlemint and Kissht were the companies that went public.

Acquisition activity remained muted, with seven deals completed during the period, compared with 10 in H2 2025 and 16 in H1 2025. GoldenPi’s acquisition by Oxyzo for $4.4 million was the highest-valued disclosed deal of the half.

Bengaluru dominates funding

The report said two unicorns were created during H1 2026, unchanged from H2 2025 and up from one in H1 2025.

While funding was spread across several cities, Bengaluru pulled well ahead of the pack in H1 2026. Startups based in the city raised $1.4 billion, accounting for 70% of all FinTech funding during the six-month period, up from 31% in H2 2025.

Mumbai was a distant second with $334 million, followed by Gurugram at $184 million. Funding was significantly lower in the remaining cities, with Hyderabad, Noida, Pune, Chennai, Delhi, Thane and Ahmedabad together accounting for just 4% of the total capital raised.

Top 5 cities by FinTech funding in H1 2026