After falling to an eight-year low in 2024, fintech investment in the EMEA region picked up to $29.2 billion in 2025 despite a continued slowdown in deals from 1,803 to an eight-year low of 1,484 year-over-year. Both deal value and deal volume were softer in H2’25, with $13.8 billion in investment across 617 deals.
The largest deals in the EMEA region during H2’25 included the $3 billion VC raise by UK-based financial services platform Revolut1, and the $2.5 billion take private of Israel-based SaaS insurance services firm Sapiens International by Advent.2 In the Middle East, the largest deals came from VC raises by Saudi Arabia-based B2B payments provider Hala ($157 million)3 and UAE-based digital real estate transactions firm Huspy ($59 million).4 In Africa, the largest deal was a $15.5 million raise by Morocco-based B2B e-commerce and financial services firm Chari.5
UK attracts largest share of fintech investment in Europe in 2025
The UK attracted the largest share of fintech investment in Europe in 2025 — $10.9 billion in fintech investment across 418 deals — despite a decline from $13.3 billion across 527 deals in 2024. The Nordics region came second with a very strong $5.3 billion across 101 deals; of this total, Sweden accounted for $4.8 billion. Meanwhile Israel attracted $2.7 billion in fintech investment, France saw $1 billion, and Germany accounted for $965.8 million.
Trends to watch for in H1’26
- Very strong focus on AI-driven solutions, with large financial institutions in particular looking at ways to use AI to accelerate innovations — although some investors are concerned about whether there’s a bubble. In some cases, it’s still unclear how these businesses will ultimately make money, or profitability remains a distant prospect. That’s fueling concerns that valuations may be driven more by story and hype than by durable revenue generation.
- Regulations increasingly shaping the use of digital assets, helping drive confidence and further investment in the space.
- Increased momentum towards a European payments infrastructure that is less dependent on US players with the European Payment Initiative (EPI) rolling out its e-commerce solution beyond Germany, expanding to Belgium, France, and the Netherlands, and with EU legislators expected to adopt the regulation establishing the digital euro.
- Some consolidation among smaller digital assets-focused fintechs given the costs associated with complying with MiCA and other regulations.
- Growth of tokenization, particularly stablecoins, deposit tokens and interoperability of such services across regulatory regimes, currencies and ecosystems.
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