Venture capital investment for fintechs in the region also fell to its lowest in a decade.

Fintech investment and deal activity in Asia Pacific continued to buck the trend in 2025— this time recording a decline while global fintech investments rebounded for the first time in three years, said KPMG.

Only $9.3b in investments flowed to APAC fintech companies in 2025 across 763 deals. This is lower than the $11.7b investments APAC received in 2024 across 1,028 deals.

Private equity fell to an all-time annual low, at just $101.8m across nine deals.

Venture capital investment fell to its lowest in a decade, reaching just $7.5b, KPMG said. This underscored the depth of regional slowdown in risk capital deployment, it said.

India was a major growth driver in APAC, raising $3.5b across 213 deals.

China followed, with $876.1m raised in fintech investments. Japan accounted for $645.6m of the investments, whilst Australia followed with $609.9m.

“Overall, deal sizes across the region remained relatively small, reflecting continued investor caution and a focus on early-stage and selective opportunities,” KPMG said.

Globally, fintech investments attracted $116b in total investment, rising from $95.5b in 2024, KPMG said.

The number of deals continued to decline, however, at just 4,719 fintech deals throughout the year, an eight-year low.

Larger deal sizes made up for the lower volumes. KPMG also observed renewed confidence and “a more selective investment environment.”

Global mergers and acquisitions (M&A) value rose to $55.4b, lifted by the US and EMEA regions. Venture capital investments climbed to $56.7b during the year.

“Whilst deal volumes remain muted, the increase in capital deployed–and the resurgence of exits– signal growing investor confidence, particularly around scalable platforms in digital assets and AI,” said Anton Ruddenklau, global lead of innovation and fintech for financial services, KPMG International.