Pulse of Fintech H1’2025

EMEA bucks global trend as fintech investment rises to $13.7 billion

The EMEA region stood apart in H1’25, with fintech investment growing from $11.1 billion across 780 deals to $13.7 billion across 759 deals. The UK accounted for the largest share of this investment, including eight of the ten largest deals in H1’25, including the $3.1 billion buyout of UK-based investment data-focused company Preqin by BlackRock,¹ a $500 million VC raise by global payments processing firm Rapyd Financial Network,²and a $500 million PE investment in fintech platform company FNZ group.³ France attracted the second largest deal in H1’25 — the $1.6 billion take private of AI-powered financial process solutions company Esker by Bridgepoint.⁴

The largest deal in the Middle East was a $160 million VC by Saudi Arabia-based financial services and shopping focused app Tabby,⁵while in Africa it was a $55 million VC raise by South Africa based payments infrastructure company Stitch.⁶

Total funding activity (VC, PE and M&A) in fintech in the EMEA, 2022-2025*

UK and France attract largest shares of fintech investment in H1’25

The UK attracted over half of all fintech funding in the EMEA region during H1’25, with $7.3 billion in investment compared to $4.8 billion in H2’24. A large share of this investment came from an increase in M&A activity, driven in part by bigger players buying up struggling fintechs. France, meanwhile, saw investment double from $974.4 million to $2.3 billion between H2’24 and H1’25. Other mature jurisdictions in Europe saw fintech investment decline, including Germany — from $1.2 billion to $651.2 million, and the Nordics region — from $297.2 million to $180.5 million. The Middle East, a rapidly emerging fintech hub, saw both fintech investment and deal volume rise from $514.3 million across 69 deals to $563.9 million across 77 deals.

Flight to quality among fintech investors

In Europe, there continued to be a flight to quality in H1’25 — with investors focusing on later stage companies with proven business models that have been able to show they can make a profit and scaleups with very strong value propositions. During H1’25 for example, France-based accounting software firm Pennylane raised $81 million —earning it coveted unicorn status; the firm is set to break even by the end of 2025.⁷ Larger growth rounds include Scalable Capital securing $175m in a Series E round from Sofina, Balderton Capital and Tencent,⁸ and Quantexa raising $175m from a.o. Warburg Pincus.⁹

Trends to watch for in H2’25

Expansion of open banking and open finance in the UK to allow for data to be used for payments purposes as well.
Increasing exploration of tokenization and trading of all manner of digital assets as actors leverage the regulatory certainty of MiCA and the long-awaited regulation in the UK market. Innovations in tokenized collateral management, such as the Euroclear-Canton project, will trigger further institutional applications.
A shift in the value chain, with payments companies getting more into the banking and core banking infrastructure space.
Growing number of fintechs targeting B2B payments and “office of the CFO” to reduce costs, increase efficiencies, and cut down on intermediaries.
Regulators in Europe moving the Digital Euro to the forefront in order to potentially stave off US dollar denominated stablecoins dominating financial markets.

The Nordic fintech ecosystem continues to demonstrate resilience and innovation, even amid global headwinds. Klarna’s anticipated IPO is not just a milestone for Sweden—it’s a signal to the world that Nordic fintech is entering a new phase of maturity and global relevance. With strong public funding, regulatory support, and a deep talent pool, the region remains a fertile ground for both early-stage disruptors and late-stage scale-ups.

Jussi Paski

Head of Startup & Venture Services

KPMG in Finland

Pulse of Fintech H1’2025

Biannual analysis of global fintech funding.

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Explore the H1'25 report

Biannual analysis of global fintech funding.

In H1 2025, fintech funding in the Americas recorded $26.7B with 1,092 deals.

In H1 2025, fintech companies in Asia Pacific (ASPAC) recorded $4.3B with 363 deals.

It’s been a more challenging start to 2025 than expected for the fintech market, given geopolitical tensions, the cost of capital and other headwinds. But a number of sectors continued to attract significant interest.