APAC fintech investment dropped from $7.1B (426 deals) in H2 2025 to $4.6B (350 deals) in H1 2026. According to KPMG’s Pulse of Fintech H1’26 report, a sluggish first quarter ($1.2B) was offset by a Q2 rebound ($3.4B), with high interest rates, shifting regulations, geopolitical tensions, and late-stage valuation adjustments dampening overall venture activity.

India dominated regional funding, bucking the downward trend by growing from $1.8B to $2.0B across 101 deals. Venture capital drove top deals, including India’s CRED ($900M) and KreditBee ($280M), Singapore’s Airwallex ($320M), and Australia’s Synthetix ($150M).

Country rankings for H1 2026 funding:

China’s lower figures stem from a mature digital market where tech giants and banks favor in-house development and strategic partnerships over standard venture capital or M&A. In Australia, rising interest rates, tax reforms, and Middle Eastern geopolitical friction led investors to prioritize cost discipline. Meanwhile, Hong Kong advanced its digital asset push by introducing its Fintech Promotion Blueprint and issuing its first two stablecoin issuer licenses.

Looking ahead to H2 2026, KPMG projects sustained investment in India, higher adoption of AI compliance tools in slower markets, potential consolidation led by major players in China, and further institutional expansion into tokenization and stablecoins out of Hong Kong.

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