The UK fintech sector raised a complete of $3.1billion within the first 9 months (9M) of 2025, a 16 per cent decline from the $3.7billion raised in the identical interval in each 2024 and 2023. The figures come from the ‘UK FinTech Report – 9M 2025’ by knowledge intelligence platform Tracxn.
Regardless of the general drop in funding, the ecosystem confirmed strong exercise in late-stage investments, massive funding rounds, and acquisitions, although this was offset by important declines in seed and early-stage investments.
Late-stage rounds and M&A exercise surge
The report highlights a transparent divergence within the UK’s funding panorama. Whereas total 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 have been recorded within the first 9 months of 2025, in comparison with 5 in 9M 2024 and 6 in 9M 2023. Notable massive rounds included Rapyd and FNZ, which every secured $500million, and Dojo, which raised $190million in a non-public fairness spherical.
In distinction, early-stage funding noticed a major drop. Seed-stage exercise fell 44 per cent to $146million, and early-stage funding declined 49 per cent to $1.1billion in comparison with the identical interval in 2024.
Consolidation within the sector elevated sharply, with 82 acquisitions recorded in 9M 2025, a 46 per cent rise from 56 acquisitions in 9M 2024. The interval was marked by the $24.3billion acquisition of Worldpay by International Funds, which was the highest-valued deal of the interval, adopted by KKR’s $3.1billion acquisition of OSTTRA.
The ecosystem additionally noticed a 100 per cent enhance in IPOs, with two in 9M 2025 (RedCloud and Diginex) in comparison with one in the identical interval final yr. One new unicorn was additionally created.
London continues to dominate UK fintech funding
London stays the undisputed hub for the UK’s fintech sector, attracting 90 per cent of the entire funding raised within the first 9 months of 2025. Swindon was the following closest metropolis, capturing 5 per cent of the entire funding.
Investor participation remained energetic throughout all phases. Y Combinator, Haatch, and Mission A have been the highest traders on the seed stage. Within the early phases, Notion, AlbionVC, and DN Capital led funding exercise, whereas Latitude Enterprise Companions and Sturdy Capital Companions have been probably the most energetic traders in late-stage rounds.
The report concludes that the UK fintech ecosystem is exhibiting combined tendencies. The sharp rise in late-stage funding, $100M+ rounds, and M&A exercise underscores robust investor confidence in mature fintech corporations. Nevertheless, a major slowdown in seed and early-stage investments highlights the challenges newer corporations face within the present local weather.
