The FinTech environment in India is changing rapidly, and mergers and acquisitions (M&A) are playing a critical role in deciding how it will develop. Following a slowdown in 2023 and 2024, the industry is seeing a rise in M&A activity primarily because of technological integrations, strategic expansions, and a supportive regulatory environment.
M&A Activity in 2025
2024 Overview: There were 26 FinTech acquisitions in 2024, compared to 31 in 2023. The $94.5 million acquisition of PureSoftware by Happiest Minds and the $44 million purchase of ET Money by 360 One were important transactions.
2025 Projections: After a drop of 71 startup M&A deals in 2024, the number of M&A transactions is expected to increase by 58% in 2025. Well-capitalised listed businesses and startups in the FinTech, e-commerce, and consumer services sectors are expected to be the primary causes of this increase.
Funding Landscape
2024 Funding: In 2024, Indian FinTechs raised $1.9 billion in total, with the third quarter being the most productive with $805 million raised. The best-performing month was August, which added $434 million to the total for the year.
2025 Momentum: With more than $550 million invested in growth-stage FinTech deals, early 2025 shows continued progress. The active participation of investors such as Peak XV Partners, Apis, and Accel indicates an increase of confidence in the industry.
Strategic M&A Moves
PayU’s Expansion: PayU plans to increase its digital payment capabilities in 2025 when it acquired a 43.5% share in Mumbai-based Mindgate Solutions.
Mintoak’s Pioneering Deal: For about $3.5 million, Mintoak—supported by PayPal and HDFC Bank—purchased Digiledge, making it India’s first acquisition in the central bank digital currency (CBDC) market.
CRED’s Strategic Acquisitions: Focusing on core financial services, CRED sold its expense management platform, Happay, to MakeMyTrip in November 2024 after acquiring Kuvera, a wealth management platform, in February 2024.
IPO Landscape
With an estimated 25 startups expected to raise over ₹55,000 crores through initial public offerings (IPOs), 2025 is set to be a record-breaking year for the Indian startup ecosystem. Among the well-known companies leading this trend are fintech companies like Pine Labs, Aye Finance, PayU, Avanse Financial Services, and Innoviti.
Future Outlook
Increased M&A activity is expected in the Indian FinTech sector as 2025 goes on, driven by:
Technological Integration: Businesses are looking for acquisitions to integrate cutting-edge technologies like blockchain and artificial intelligence into their products.
Regulatory Clarity: Partnerships and consolidations are being encouraged by a more clearly defined regulatory environment.
Market Expansion: Companies are diversifying their product lines and breaking into new markets by using M&A.
To sum up, M&A activity is expected to be very important for deciding the direction of India’s FinTech industry going forward, enabling innovation, and driving long-term growth.
