Key Indian WealthTech investment stats in Q1 2025:
- Indian WealthTech funding dropped drastically by 63% YoY in Q1 2025
- Funding is projected to drop by just under a third for 2025 as investors grow cautious
- Smallcase, a leading WealthTech platform specialising in model portfolios of stocks and ETFs, secured one of the largest Indian WealthTech deals of the quarter with a $50m Series D funding round
Indian WealthTech funding dropped drastically by 63% YoY in Q1 2025
In Q1 2025, the Indian WealthTech sector witnessed a substantial decline in both deal activity and funding compared to the same period in the previous year.
Only 11 deals were recorded during the quarter, marking a 77% drop from the 47 deals completed in Q1 2024.
Funding also contracted sharply, falling 63% to $305m in Q1 2025 from $830m in Q1 2024.
This steep decline signals a more risk-averse stance among investors, who appear to be exercising heightened caution in deploying capital amid ongoing macroeconomic uncertainty and a recalibration of valuation expectations in the WealthTech space.
Funding is projected to drop by just under a third for 2025 as investors grow cautious
If the current pace of investment activity holds throughout the remainder of the year, 2025 would close with just 44 deals and $1.2bn in total funding.
This would represent a 54% drop in deal volume compared to the 96 transactions recorded in 2024, and a 30% decline from the $1.7bn raised last year.
Despite this overall contraction, the average deal size in Q1 2025 stood at $27.7m, significantly up from $17.7m in Q1 2024.
This increase suggests that while fewer companies are securing funding, those that do are attracting larger rounds—likely signalling investor preference for more mature, revenue-generating firms with proven resilience and sustainable growth paths.
The data underscores a continued shift towards quality over quantity, with investors concentrating their bets on a smaller number of higher-potential companies.
The rise in average deal value, despite lower overall funding and volume, reflects a deliberate strategy by backers to support later-stage or more defensible WealthTech models, rather than early-stage experimentation.
As market sentiment remains cautious, and liquidity more selective, the Indian WealthTech sector may see a more concentrated landscape emerge, shaped by consolidation and the survival of only the most capital-efficient and adaptable players.
Smallcase, a leading WealthTech platform specialising in model portfolios of stocks and ETFs, secured one of the largest Indian 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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