The UK fintech sector raised a total of $3.1billion in the first nine months (9M) of 2025, a 16 per cent decline from the $3.7billion raised in the same period in both 2024 and 2023. The figures come from the ‘UK FinTech Report – 9M 2025’ by data intelligence platform Tracxn.
Despite the overall drop in funding, the ecosystem showed robust activity in late-stage investments, large funding rounds, and acquisitions, though this was offset by significant declines in seed and early-stage investments.
Late-stage rounds and M&A activity surge
The report highlights a clear divergence in the UK’s funding landscape. While overall funding contracted, late-stage investments drove momentum, rising 42 per cent to $1.9billion in 9M 2025, up from $1.3billion in 9M 2024.
This was bolstered by a resurgence in megarounds. Eight funding rounds of over $100million were recorded in the first nine months of 2025, compared to five in 9M 2024 and six in 9M 2023. Notable large rounds included Rapyd and FNZ, which each secured $500million, and Dojo, which raised $190million in a private equity round.
In contrast, early-stage funding saw a significant drop. Seed-stage activity fell 44 per cent to $146million, and early-stage funding declined 49 per cent to $1.1billion compared to the same period in 2024.
Consolidation in the sector increased sharply, with 82 acquisitions recorded in 9M 2025, a 46 per cent rise from 56 acquisitions in 9M 2024. The period was marked by the $24.3billion acquisition of Worldpay by Global Payments, which was the highest-valued deal of the period, followed by KKR’s $3.1billion acquisition of OSTTRA.
The ecosystem also saw a 100 per cent increase in IPOs, with two in 9M 2025 (RedCloud and Diginex) compared to one in the same period last year. One new unicorn was also created.
London continues to dominate UK fintech funding
London remains the undisputed hub for the UK’s fintech sector, attracting 90 per cent of the total funding raised in the first nine months of 2025. Swindon was the next closest city, capturing five per cent of the total funding.
Investor participation remained active across all stages. Y Combinator, Haatch, and Project A were the top investors at the seed stage. In the early stages, Notion, AlbionVC, and DN Capital led investment activity, while Latitude Venture Partners and Durable Capital Partners were the most active investors in late-stage rounds.
The report concludes that the UK fintech ecosystem is showing mixed trends. The sharp rise in late-stage funding, $100M+ rounds, and M&A activity underscores strong investor confidence in mature fintech firms. However, a significant slowdown in seed and early-stage investments highlights the challenges newer companies face in the current climate.
