Key European FinTech investment stats in Q4 2025:
- European FinTech funding reached its peak in Q4 2025 with an increase of 87% QoQ
- Large deals rose by 3.9x QoQ as investors focused on high value transactions
- Zilch, a UK-based consumer payments platform focused on reshaping how shoppers and merchants transact, completed one of the biggest European FinTech deals of the quarter with a $176.7m funding round
European FinTech funding reached its peak in Q4 2025 with an increase of 87% QoQ
In the fourth quarter of 2025, the European FinTech market saw a sharp rebound in funding alongside relatively stable deal activity, marking the strongest quarter of the period.
Q4 2025 closed with 176 deals, broadly flat compared with the 174 deals recorded in Q3 2025 but down 9% from the 194 deals seen in Q4 2024.
In contrast, total funding surged to $5.5bn, up 2.7x from the $2bn raised in Q3 2025 and 87% higher than the $3bn recorded in Q4 2024, making Q4 2025 the highest-funded quarter overall.
This influx of capital pushed the average deal size to $31.4m in Q4 2025, more than doubling from $11.7m in Q3 2025 and well above the $15.3m average seen a year earlier.
Large deals rose by 3.9x QoQ as investors focused on high value transactions
The funding uplift in Q4 2025 was overwhelmingly driven by larger transactions.
Deals valued at $100m or more accounted for $4bn in Q4 2025, representing a 7.3x increase from the $551m raised in Q3 2025 and a 3.9x rise from the $1bn recorded in Q4 2024, making it the strongest quarter for large deals across the period.
By comparison, funding from deals under $100m totalled $1.5bn in Q4 2025, broadly flat quarter on quarter, rising 2% from $1.5bn in Q3 2025 but down 22% from the $1.9bn raised in Q4 2024.
This divergence highlights that while overall deal volumes remained constrained, Q4 2025 was defined by a concentration of capital into a small number of high-value European FinTech transactions.
Zilch, a UK-based consumer payments platform focused on reshaping how shoppers and merchants transact, completed one of the biggest European FinTech deals of the quarter with a $176.7m funding round
Which was led by KKCG, with participation from BNF Capital and other strategic investors.
The funding follows the launch of two major products, including Intelligent Commerce, an AI-powered platform that converts live engagement data into real-time insights for merchants, and Zilch Pay, a one-click checkout solution scheduled for launch in early 2026, both of which deepen the platform’s role in the evolving agentic commerce ecosystem.
Since launching in 2020, Zilch has grown to more than 5.3m customers, processes payments across thousands of retailers including major global brands, and has facilitated over $6.8bn in commerce, with highly engaged users transacting frequently throughout the year.
The new capital will be used to accelerate brand visibility through increased marketing spend, enhance product development and platform capabilities, and explore strategic M&A opportunities as Zilch continues to scale its alternative to high-cost consumer credit across European and global markets.
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