Global FinTech funding hits $24b in H1 2025

By Vriti Gothi

Global FinTech investment rose to $24 billion across 2,597 deals in the first half of 2025, marking a modest 6% increase compared to the second half of 2024, according to data compiled by Innovate Finance.

While the US continues to lead the sector with $11.5 billion invested across 1,082 deals, shifting dynamics in other regions are reshaping the competitive landscape.

For the first time, the UAE has emerged as the world’s second-largest FinTech market, fuelled largely by Binance’s $2 billion transaction, pushing total investment in the country to $2.2 billion for H1 2025. This milestone highlights the UAE’s growing role as a magnet for high-value FinTech deals, strengthening its position as a regional hub for innovation and digital finance.

The UK, traditionally Europe’s FinTech leader, secured $1.5 billion in funding across 240 deals, making it the third-largest FinTech market globally and maintaining its top spot in Europe ahead of France and Germany combined. However, the gap with other fast-growing markets such as India and Singapore is narrowing. India attracted $1.4 billion in FinTech funding in H1 2025, while Singapore reached $798 million, underscoring the intensifying competition for global capital.

Despite ongoing macroeconomic pressures and a more cautious funding environment, UK FinTechs continue to demonstrate robust fundamentals. Eleven of the UK’s most profitable FinTech firms, including major players such as Revolut, Wise, Monzo and Starling Bank, generated a combined $3.3 billion in pre-tax profits in 2024 and collectively employ over 26,000 people, reinforcing the sector’s contribution to the broader economy.

Across Europe, excluding the UK, FinTech funding also showed positive momentum, with companies raising $2.9 billion in H1 2025, up 28% from the previous half-year. France and Germany posted solid figures, with FinTech firms in France raising $693 million and those in Germany attracting $668 million.

The data reflects a cautiously optimistic outlook for the global FinTech sector, with signs of stabilisation and resilience emerging across key markets. However, with new hubs like the UAE and Asia’s leading economies gaining ground, established markets will need to prioritise access to growth capital and continued innovation to maintain their competitive edge in the evolving global FinTech landscape.