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Global fintech investment rose sharply in 2025, climbing 21 per cent to $53 billion across 5,918 deals, signalling a strong recovery after several years of subdued venture capital activity, according to new figures from Innovate Finance.
The rebound was driven by renewed investor confidence, with funding momentum accelerating significantly in the second half of the year. Investment volumes in H2 2025 were 61 per cent higher than in the first half, pushing total annual funding close to 2023 levels.
The United States maintained its position as the world’s largest fintech market, attracting $25.1 billion in investment. Payments and cryptocurrency platforms dominated the year’s biggest deals globally, including Binance’s $2 billion raise in the UAE, Ramp’s $1 billion round in the US, and $650 million secured by UK-based FNZ. Other notable transactions included Kraken’s $800 million raise in the US and PhonePe’s $600 million round in India.
The UK reclaimed second place globally and ranked first in Europe, attracting $3.6 billion in fintech investment, narrowly ahead of India at $3.4 billion. The UAE followed with $2.5 billion, while Singapore secured $2 billion to complete the global top five.
Although total UK fintech funding was largely flat year-on-year—rising just 0.4 per cent from 2024 and still 37 per cent below 2023 levels—the second half of 2025 recorded an 11 per cent increase compared to the first half, pointing to early signs of recovery.
Major UK deals during the year included FNZ ($650 million), Rapyd ($300 million), Dojo ($190 million), Quantexa ($175 million), and Fnality ($136 million). Secondary market activity was also strong, with Revolut completing $3 billion in secondary transactions, valuing the company at $75 billion.
Across Europe, fintech investment increased by 7 per cent year-on-year to $8.8 billion from 1,391 deals. The UK accounted for $3.6 billion from 534 transactions—more than the next five European countries combined. France returned to the global top 10 with $1.1 billion in funding, followed by Germany with $1 billion.
Despite the improvement, Europe’s recovery lagged behind that of the United States, where funding grew 13 per cent, and the rest of the world, which recorded a 46 per cent increase, highlighting a slower rebound for the region.
Commenting on the figures, Janine Hirt, Chief Executive Officer of Innovate Finance, said the data underlined the resilience and global competitiveness of the UK fintech ecosystem. She noted that while the UK had again secured second place globally, faster regulatory reforms, improved access to growth capital and a supportive investment environment would be critical to maintaining its lead as competition intensifies.
UK Economic Secretary to the Treasury Lucy Rigby said the rebound in investment during the second half of the year demonstrated the sector’s strength and resilience. She added that the momentum provides confidence heading into 2026, as the government looks to back fintech innovators and ensure capital flows to businesses driving future economic growth.
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