APAC fintech funding slump underscores evolving business models as deal-volume falls to US$4.3 billion in H1 2025
The fintech sector in the Asia-Pacific region is facing a critical juncture as new data shows investment volumes and deal-counts remain weak, despite the ongoing digital-transformation imperative. According to a new study by KPMG (“Pulse of Fintech H1 2025: Asia-Pacific”), fintec…
The fintech sector in the Asia-Pacific region is facing a critical juncture as new data shows investment volumes and deal-counts remain weak, despite the ongoing digital-transformation imperative. According to a new study by KPMG (“Pulse of Fintech H1 2025: Asia-Pacific”), fintech funding in the region stood at just US$4.3 billion across 363 deals in the first half of 2025, down from US$7.3 billion across 444 deals in H2 2024. KPMG
What the data reveals
Underlying drivers
What this means for fintech players
Regional focus & trends
Implications for investors & ecosystem
Outlook
Over the next 12-24 months:
In summary, while the headline numbers for APAC fintech investment may appear weak, the structural evolution of the industry (towards infrastructure, B2B, embedded models) suggests that the next phase of fintech growth may be less flashy, but more substantive. Firms and investors that adapt accordingly may emerge stronger.
Written by
Charlotte Reeve
Senior correspondent · Capital Markets & Fintech
Charlotte cut her teeth on an equities desk before moving to the other side of the notebook. She covers capital markets, stock exchanges, and the fintech operators trying to disintermediate the banks that trained her. Sharpest on market microstructure and payments infrastructure; still reads a prospectus for fun. Based in Singapore. Reach out at charlotte.reeve@theplatinumcapital.com.