US WealthTech Dominance Endures as Global Deal Activity Plummets by 47% in 2025

The global WealthTech sector experienced a significant downturn in 2025, with both funding and deal activity sharply contracting. Despite this challenging landscape, the United States firmly maintained its position as the leading WealthTech hub worldwide. Indian-based platform Groww emerged as a standout, securing one of the year’s largest private equity funding rounds.

Global WealthTech Investment Plummets in 2025

Following a sharp correction initiated in 2021, the WealthTech market continued its decline throughout 2025. The sector recorded just 809 deals globally, marking a substantial 47% year-over-year decrease from the 1,533 deals observed in 2024. This figure represents a staggering 90% drop when compared to the 7,959 deals completed in 2021, highlighting a sustained reset in market activity.

Total funding across the sector also saw a sharp decline, falling to $10.8bn. This represents a 44% reduction from $19.2bn in 2024 and a massive 92% plunge from the peak of $133.8bn raised in 2021. The consistent downturn underscores that both capital deployment and transaction volumes remain significantly below previous peak levels.

US Remains the Foremost WealthTech Hub Globally

Geographically, the United States solidified its leadership within the WealthTech market in 2025. US-based companies accounted for 363 deals, capturing a dominant 45% share of all global transactions. While this volume represents a 37% decrease from 572 deals in 2024, the US significantly increased its market share from 37% in the previous year, demonstrating remarkable resilience.

India secured the second position with 78 deals, claiming a 10% share, despite a 19% drop from 96 deals in 2024. The UK followed in third place with 74 deals, representing a 9% share and a 39% decline from 121 deals in the prior year.

Remarkably, despite absolute drops in deal numbers across all three top markets, each country expanded its share of global WealthTech activity. This trend indicates a growing concentration of investment within these established ecosystems, further cementing their strategic importance.

Groww Secures Major $202.3m Funding Round

Amidst the widespread market contraction, Indian WealthTech platform Groww stood out by securing one of the year’s largest private equity funding rounds. The company raised an impressive $202.3m, with participation from leading investors such as GIC and ICONIQ Capital, valuing the platform at a substantial $7bn.

This significant investment follows a rapid 3.5x increase in Groww’s valuation since the previous year and positions the company for an anticipated public listing. The capital injection is earmarked to scale its core investment platform, broaden the reach of its subsidiaries, and further enhance its technology-driven solutions for retail investors.

Established in 2017, Groww demonstrated strong operational performance, achieving profitability in FY25 with a profit after tax of $212.1m. This success was fueled by a 30% jump in operating revenue, reaching $448m. Groww’s impressive growth and profitability underscore its strong market traction and its status as a leading digital wealth management player in India.

Source: fintech.global