Key Indian FinTech investment stats in Q3 2024:
- Indian FinTech deal activity rose by 64% QoQ in Q1 2025
- Average deal value dropped to $14.7m as investors chased smaller deals
- ToneTag, a Bengaluru-based digital payments startup specialising in audio-based authentication and proximity payment solutions, secured one of the biggest Indian FinTech deals of the quarter with a $77.5m Series B2 funding round
Indian FinTech deal activity jumped 64% QoQ in Q1 2025
In Q1 2025, the Indian FinTech market showed signs of recovery in both funding and deal activity compared to the previous quarter, though levels remained below early 2024 figures.
A total of 36 deals were recorded in Q1 2025, representing a 64% increase from the 22 deals completed in Q4 2024.
Funding also rebounded strongly, with Indian FinTech firms raising $531m in Q1 2025—an increase of 59% from the $333m raised in Q4 2024.
Despite this QoQ growth, both metrics remained significantly lower than the same period last year.
Compared to Q1 2024, deal activity fell by 65% from 103 deals, while funding declined by 64% from $1.45bn, underscoring ongoing challenges in investor confidence.
Average deal value dropped to $14.7m as investors chased smaller deals
The average deal value in Q1 2025 stood at $14.8m, slightly higher than the $14.1m average in Q1 2024 but down from the $15.1m recorded in Q4 2024.
Although deal volumes have picked up since the previous quarter, the modest average deal size suggests that capital is still being deployed cautiously.
The decline in average deal value from Q4 2024 points to a strategic investor shift towards smaller transactions.
Rather than backing large-scale investments, investors appear to be focusing on early-stage or lower-ticket opportunities.
This trend reflects a more risk-sensitive approach as the Indian FinTech market continues to adjust to tighter funding conditions and broader macroeconomic pressures.
ToneTag, a Bengaluru-based digital payments startup specialising in audio-based authentication and proximity payment solutions, secured one of the biggest Indian FinTech deals of the quarter with a $77.5m Series B2 funding round
The round was co-led by ValueQuest Scale Fund and Iron Pillar, with continued backing from Elevate Capital.
The funding includes a mix of primary and secondary transactions and will be used to scale operations, strengthen customer payment experiences, drive R&D, and expand globally.
Founded in 2013, ToneTag’s patented soundwave technology supports over 30 million interactions daily and is deployed by global firms like Google and Amazon as well as leading Indian banks such as SBI and ICICI.
The company also powers NPCI’s UPI123 Pay for feature phones and provides software-based voice payment systems, with ambitions to grow its footprint in Asia, South America, and the Middle East.
The deal comes amid broader shifts in India’s digital payments ecosystem, where UPI continues to dominate transaction volumes despite reduced government incentives, underscoring the importance of scalable and sustainable FinTech models like ToneTag’s.
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