Fintech funding and deal activity in Asia Pacific diverged from global trends in 2025, declining even as worldwide fintech investment rebounded after three years, according to KPMG.
APAC fintech firms attracted $9.3b in funding across 763 deals in 2025, down from $11.7b raised through 1,028 deals in 2024. Private equity activity hit a record annual low, with only $101.8m invested across nine deals.
Venture capital funding also dropped to its weakest level in a decade, totaling just $7.5b, highlighting the extent of the region’s slowdown in risk capital deployment.
India emerged as a key growth contributor in the region, securing $3.5b across 213 deals. China followed with $876.1m in fintech funding, while Japan accounted for $645.6m and Australia recorded $609.9m in investments.
KPMG noted that deal sizes across the region generally remained modest, reflecting persistent investor caution and a stronger focus on early-stage and carefully selected opportunities.
Globally, fintech investment reached $116b, up from $95.5b in 2024. Despite this increase, the number of deals fell to 4,719, marking an eight-year low. Higher deal values helped offset the decline in volume, alongside renewed investor confidence and a more selective investment climate.
Global mergers and acquisitions climbed to $55.4b, supported largely by activity in the U.S. and EMEA regions, whilst venture capital funding rose to $56.7b. According to KPMG, although deal volumes remain subdued, higher capital deployment and a revival in exit activity suggest improving investor sentiment, particularly toward scalable platforms in digital assets and artificial intelligence.
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