Indian payments firms raised $5.8 bn in last five years

India’s payments sector has raised $5.8 billion across 371 equity funding rounds since January 2021, while producing eight initial public offerings (IPOs) and triggering 25 acquisitions, as the industry increasingly consolidates around a handful of well-funded players, according to data from global market intelligence platform Tracxn.

The funding cycle has witnessed significant volatility as investment peaked in 2021 before the market correction between 2022 and 2024 ushered in a prolonged funding winter. The sector showed tentative signs of recovery in 2026, Tracxn said.

The overall funding figure, however, masks a sharp concentration of capital among market leaders. CRED’s $540 million funding round was among the largest transactions during the period.

The five biggest recipients — CRED and PhonePe, with roughly $1 billion each, Pine Labs with $641 million, Razorpay with $535 million and BharatPe with $440 million -- accounted for about 66% of disclosed capital raised during the period.