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      Fintech funding in ASPAC region falls remains very weak

      In the ASPAC region, both fintech investment and deal volume remained very weak, with just $4.3 billion in investment across 363 deals during H1’25, compared to $7.3 billion across 444 deals in H2’24. Q1’25 saw particularly poor results, with investment falling to $1.6 billion — a level not seen in over 10 years.

      Deal sizes in the ASPAC region remained relatively low, with only seven $100 million+ megadeals during H1’25 — the $571.4 million acquisition of Japan-based robo advisory firm WealthNavi by MUFG,¹ Cango’s sale of its China-based legacy business to Ursalpha Digital Limited for $351.9 million,² a $301 million raise by Airwallwex,³ a $200 million raise by India-based investment platform Groww,⁴ a $171.8 million by India-based asset financing company IKF Finance,⁵ and $150 million and $147 million VC raises by Singapore-based payments infrastructure company Thunes⁶ and insurtech-as-a-service firm Bolttech respectively.⁷

      Total funding activity (VC, PE and M&A) in fintech in the ASPAC, 2022-2025*

      Emerging markets continuing to see activity, as other jurisdictions faulter

      Within the ASPAC region, a significant amount of fintech activity that occurred in H1’25 centered on emerging markets. India, in particular, saw the greatest volume of deals in the region during the first half despite a small decrease from H2’24 — with 99 deals accounting for $1.5 billion in investment in H1’25, compared to 108 deals accounting for $1.6 billion in H2’24. Much of India’s fintech investment came from VC raises, including the $200 million raise by Groww, the $171.8 million raise by IKF Finance, a $78 million raise by contactless payments solutions firm ToneTag,⁸ a $77.7 million raise by digital lender Flexiloans,⁹ a $75 million raise by rural-focused loan platform Jai Kisan. Other jurisdictions saw less robust activity — with Japan attracting $760.5 million across 39 deals, Australia attracting $142.4 million across 31 deals, and China attracting $423 million across 22 deals.

      Hong Kong (SAR), China starting to attract fintech IPO activity

      During H1’25, the IPO market in Hong Kong (SAR), China, started to come back for fintech companies; insurtech companies appeared first off the mark to take advantage, with a number listing or filing plans to list heading into the second half of the year. One of the most notable of these was FWD Group — an innovative ASPAC-focused insurance company — which was set for an imminent IPO at the end of H1’25 after several years of delays.¹⁰

      Trends to watch for in H2’2025

      • Stablecoins and tokenized money continuing to attract robust interest within central banks, commercial banks, payment service providers and MNC (multinational corporation) platforms.
      • Financial market infrastructure (FMI) continuing to modernize across payments, national registries and digital identity domains.
      • Continued focus on the five-finance strategy in China, with traditional financial institutions increasingly embracing fintech and working with fintechs to offer small finance and embedded finance.
      • Data management and generative AI priorities for central banks and financial regulators driving intense interest within incumbent financial institutions.
      • Core banking renewal investments across tier 2 and tier 3 banks in Australasia and Southeast Asia.
      • Fraud and financial crime platforms evolving to meet growing phishing, scams and money laundering threats.
      Just six months ago, much of the conversation in financial services centered around small language models. Today, the focus has shifted to AI agents and their potential applications across the sector. A number of fintechs are actively developing in this space, which is evolving at a rapid pace. While still early stage, we may begin to see more mature AI agent use cases emerging.

      Andrew Huang

      Partner, Head of Fintech

      KPMG China

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      Pulse of Fintech H1’2025

      Biannual analysis of global fintech funding.
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      Explore the H1'25 report

      Biannual analysis of global fintech funding.
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      In H1 2025, fintech funding in the Americas recorded $26.7B with 1,092 deals.
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      In H1 2025, funding in fintech companies in Europe, Middle East and Africa (EMEA) recorded $13.7B with 759 deals.
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      It’s been a more challenging start to 2025 than expected for the fintech market, given geopolitical tensions, the cost of capital and other headwinds. But a number of sectors continued to attract significant interest.
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      ¹ Reuters. “Japan's MUFG to spend over $660 million to buy robo-adviser WealthNavi,” 29 November 2024.

      ² Reuters. “Japan's MUFG to spend over $660 million to buy robo-adviser WealthNavi,” 29 November 2024.

      ³ Airwallex. “Airwallex raises $300 million at a $6.2 billion valuation to build the future of global banking,” 21 May 2025.

      ⁴ Inc42. “Groww Closes $200 Mn Funding Round Ahead Of IPO,” 13 June 2025.

      ⁵ DealStreetIndia. “171.7 million by India-based asset financing company IKF Finance,” 15 May 2025.

      ⁶ FinTech Global. “Global payments FinTech Thunes raises $150m Series D led by Apis Partners and Vitruvian Partners,” 28 April 2025.

      ⁷ TechCrunch. “Bolttech closes Series C at $147M with a $2.1B valuation to bolster its embedded insurance offerings,” 4 June 2025.

      ⁸ Entracker. “Amazon-backed ToneTag secures $78 Mn after 7-year hiatus,” 11 February 2025.

      ⁹ Accion. “FlexiLoans Raises $80Mn in 6 Months, Closes Latest ~$45Mn in Series C Round to Empower Indian MSMEs,” 11 June 2025.

      ¹⁰ Yahoo Finance. “FWD Group targets $442m in Hong Kong IPO,” 27 June 2025.

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      Haji Karim
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      Global Head of Financial Services, KPMG International, Head of Financial Services, KPMG in the UK

      KPMG in Luxembourg

      Anton Ruddenklau
      Anton Ruddenklau

      Global Head of Financial Services Innovation and Fintech

      KPMG International

      Andrew Huang
      Andrew Huang

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      KPMG in China