Global fintech funding surged by 21% in 2025, reaching $53 billion across 5,918 deals, marking a strong rebound after years of decline, according to new data from Innovate Finance. The report highlights renewed investor confidence following a challenging period for venture capital. Global investment momentum accelerated in the second half of 2025, rising 61% compared to the first half, pushing annual totals close to 2023 levels. Payments and cryptocurrency platforms dominated the largest deals worldwide. Binance secured $2 billion in the UAE, Ramp raised $1 billion in the US, and UK-based FNZ attracted $650 million. Other major deals included Kraken ($800 million, US) and PhonePe ($600 million, India). The UK reclaimed second place globally and first in Europe with $3.6 billion, narrowly ahead of India at $3.4 billion. The UAE ($2.5 billion) and Singapore ($2 billion) rounded out the top five. UK fintech investment remained largely flat compared to 2024, rising just 0.4% and still 37% below 2023 levels. However, the second half of 2025 saw an 11% increase over the first half, signaling early signs of recovery. Key UK deals included FNZ ($650m), Rapyd ($300m), Dojo ($190m), Quantexa ($175m), and Fnality ($136m). Secondary market activity was also strong, with Revolut completing $3 billion in secondary transactions, valuing the company at $75 billion. European fintech investment grew 7% year-on-year to $8.8 billion across 1,391 deals. The UK led the region with $3.6 billion from 534 deals, more than the next five European countries combined. France returned to the global top 10 with $1.1 billion, while Germany followed with $1 billion. Despite the uptick, Europe’s recovery lagged behind the US (13%) and the rest of the world (46%), suggesting a slower rebound for the region. Janine Hirt, CEO of Innovate Finance, says: “Our latest investment figures show the resilience, strength, and global competitiveness of our phenomenal UK FinTech ecosystem. Attracting a strong $3.6 billion in investment in 2025 - and again claiming second place globally behind only the United States - the UK has once again proven its credentials as a world-leading financial innovation and technology hub. Other countries are quickly gaining pace however, and so to maintain our global lead it is imperative that we push ahead on delivering key regulatory reforms with speed, increase access to growth capital, and continue to foster an environment which is attractive for both domestic and international entrepreneurs and investors. Our thriving UK FinTech sector is driving growth and productivity across the country, supporting consumers with the cost of living, facilitating greater financial inclusion, and creating thousands of jobs each year. We at Innovate Finance look forward to continuing to work with industry, regulators, and government to cement the UK as the best place in the world to start, build and scale a FinTech business.” Economic Secretary to the Treasury Lucy Rigby adds: “UK fintech continues to show real strength and resilience, with an upsurge in investment in the second half of last year and the UK firmly established as Europe’s leading fintech hub. That momentum gives us confidence going into 2026 and I want to double down on it — backing UK innovators and wealth creators, and ensuring investment flows to the fintechs that will drive this country’s future prosperity.”
By on 2026-01-09 08:00:00
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