The report highlights that Canada’s fintech ecosystem continues to attract substantial interest, especially in digital assets and AI-focused ventures, signalling a maturing market poised for sustained growth
In the first half of 2025, Canadian Fintechs demonstrated resilience, securing $1.62 billion across 60 deals, according to KPMG International’s Pulse of Fintech H1’25 report.
While this figure marks a significant decline from the record-breaking $7.5 billion invested in the second half of 2024 and $2.4 billion in the first half of 2024, the sector’s performance remains steady given the global economic headwinds.
The report, compiled with data from PitchBook, highlights that Canada’s fintech ecosystem continues to attract substantial interest, especially in digital assets and AI-focused ventures, signalling a maturing market poised for sustained growth.
The drop in investment from 2024’s highs, which were driven by mega-deals such as the $6.3 billion take-private of Montreal-based Nuvei and a $1 billion private equity investment in Plusgrade, reflects a normalization rather than a retreat in investor confidence.
Last year was exceptionally strong for fintech investment, thanks to two major take-private deals, said Dubie Cunningham, a Partner in KPMG Canada’s Banking and Capital Markets Practice.
Investment activity has dropped to more stable levels, but when you consider economic shifts like tariffs affecting global trade, the first half was quite robust compared to historical levels, Cunningham said.
Cunningham emphasized that investors remain selective, prioritizing quality companies with strong fundamentals, which has led to longer maturation periods for mid-to-large stage private equity deals.
Digital assets and AI-driven fintechs captured the lion’s share of investments in H1 2025, continuing a trend from 2024.
The resurgence of interest in digital assets, particularly cryptocurrencies and blockchain technologies, was bolstered by a more favourable regulatory environment in countries such as the U.S., including the dismissal of the Coinbase lawsuit and growing mainstream adoption of stablecoins.
Edith Hitt, a partner leading KPMG Canada’s Digital Financial Services Transformation team in Québec, noted: Tokenization is back in strategic roadmaps, and marquee moves like Stripe’s acquisition of Bridge and its partnership with Visa to launch asset-backed credit cards signal maturing commercial models.
Hitt predicts that investor interest in digital assets will remain strong into 2026.
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