Asia Pacific fintech investment hit decade-low in 2025

The report said investment was relatively steady between the first and second halves of 2025, with $4.8 billion deployed across 401 deals in the first half and $4.6 billion across 362 deals in the second half

Fintech investment in the Asia Pacific fell to levels not seen in more than a decade in 2025, as geopolitical tensions, uneven growth, and a cautious funding environment kept dealmaking subdued, according to a report by KPMG.

Deal value and volume slid to $9.3 billion across 763 transactions in 2025 from an already soft $11.7 billion across 1,028 deals in 2024, KPMG said.

The report said investment was relatively steady between the first and second halves of 2025, with $4.8 billion deployed across 401 deals in the first half and $4.6 billion across 362 deals in the second half, suggesting a market that has stabilised at a lower base rather than rebounding.

While average deal sizes remained below historical norms, several jurisdictions still attracted $100 million-plus transactions in the second half of the year.

KPMG cited a $330 million venture capital round by Australia-founded, Singapore-based payments firm Airwallex; Mizuho Financial Group’s $313.6 million purchase of a majority stake in Japan-based AI-driven business credit solutions firm Upsider; a $200 million venture raise by South Korea-based fintech super app Toss; and a $140 million venture round by Indonesia-based credit card issuer Honest.

Venture capital accounted for the bulk of fintech investment in Asia Pacific in 2025, totalling $7.5 billion across 672 deals, the report said.

Mergers and acquisitions contributed $1.7 billion across 82 deals, while private equity activity was limited to $101.8 million across nine deals.

KPMG said the slowdown was broad-based but uneven across markets.

China’s fintech investment dropped to $876.1 million from $991.7 million a year earlier, which it attributed to persistent economic challenges, geopolitical tensions, and tighter regulation.

Australia saw a sharper decline, to $609 million from $1.9 billion, as the market continued to rightsize. South Korea was an exception, with investment increasing to $402.4 million from $245.6 million, although nearly half of the 2025 total came from Toss’s fundraising, the report noted.

Across the Fintech landscape, we’re seeing some of the smaller providers looking at consolidation to drive scale and maintain relevance, said Daniel Teper, partner, M&A and head of fintech at KPMG Australia.