Key Asian WealthTech investment stats in Q1 2025:
- Asian WealthTech deal activity nearly halved QoQ during the first three months of 2025
- Indian companies claimed the largest share of the Asian WealthTech market with 30% of all deals
- Smallcase, India’s leading WealthTech platform specialising in model portfolios of stocks and ETFs, secured one of the largest Asian WealthTech deals of the quarter with a $50m Series D funding round
Asian WealthTech deal activity nearly halved QoQ during the first three months of 2025
In Q1 2025, the Asian WealthTech market saw a partial recovery in funding following a steep decline in late 2024.
Total funding reached $805m, a 3x increase from the $268m recorded in Q4 2024.
Despite this rebound, funding remained significantly below Q1 2024 levels, marking a 67% decrease from the $2.4bn raised in the same quarter the previous year.
Deal activity followed a similar trend, climbing to 43 deals in Q1 2025, up 48% from the 29 deals in Q4 2024, but still representing an 82% drop compared to the 243 deals completed in Q1 2024.
This suggests that while market confidence is gradually returning, investor appetite remains far more cautious than a year ago.
Indian companies claimed the largest share of the Asian WealthTech market with 30% of all deals
India emerged as the most active WealthTech market in Asia in Q1 2025, completing 13 deals and accounting for 30% of total deal activity.
This marks a decline from the 57 deals (23% share) recorded in Q1 2024, but reflects a stronger relative position.
Japan ranked second with seven deals (16% share), up from outside the top three a year earlier.
China completed six deals (14% share), a steep fall from its 78 deals (32% share) in Q1 2024.
These shifts indicate a diversification in regional activity, with India and Japan increasing their proportional importance as China’s dominance diminishes amidst a broader contraction in market activity.
Smallcase, India’s leading WealthTech platform specialising in model portfolios of stocks and ETFs, secured one of the largest Asian WealthTech deals of the quarter with a $50m Series D funding round
The funding round led by Singapore’s Elev8 Venture Partners.
The round, comprising both primary and secondary capital, also attracted participation from prominent institutional investors such as State Street Global Advisors, Faering Capital, and HDFC Bank.
Founded in 2016, Smallcase offers a transparent and accessible investment platform that allows retail investors to build diversified long-term portfolios through curated baskets called “smallcases”.
With over 180 partners including brokers, advisers, and wealth managers, Smallcase has evolved from a stock and ETF-based model portfolio provider to a broader wealth-building platform.
Recent expansions include a joint venture with Zerodha to launch an asset management company focusing on index funds and ETFs, and plans to extend offerings into mutual funds, fixed income, and net-worth optimisation tools.
This funding will be used to deepen product capabilities across asset classes and enhance the platform’s utility in India’s growing retail wealth management ecosystem.
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