Fintech funding in Indonesia experienced a significant decline in 2025, falling 83% year-over-year (YoY), according to a new report by Foundry Collective and Discovery/Shift.

Despite this sharp decrease, fintech remained the second-largest recipient of startup funding country in the country, reflecting sustained investor confidence in digital financial services.

In 2025, Indonesian fintech startups secured a total of US$77.1 million in equity funding, marking a substantial drop from US$459.5 million in 2024. The decline mirrors the broader drop in funding across Indonesia, where tech startups raised only US$355.7 million in 2025, down 49% YoY from US$694.6 million in 2024.

According to the report, this trend reflects ongoing market adjustment and a more selective investment environment compared to the peak years of 2021-2022. This moderation highlights a shift away from aggressive growth toward capital efficiency and disciplined deployment.

The shift is evident in the focus on growth and later-stage funding in 2025, supported by several sizeable transactions towards more mature and fundamentally sound companies. Notable examples included the Series C rounds secured by Astro (US$51.9 million), Sirclo (US$38 million), and Moladin (US$35 million).

Overall, Series A through Series C captured 80% of total capital deployed in 2025, amounting to US$290 million. At the Series C stage, deal sizes increased significantly to average US$30.5 million, marking a 3.4-fold increase over Series B rounds. This further suggests that investors are prioritizing proven startups ready for aggressive scaling, and on the path for profitability.

Indonesian Fintech trends

The fintech sector followed a similar trend, shifting from “growth at all costs” to “regulated scale-up”. Capital flowed into players capable of scaling within a more structured and regulated landscape, and those securing partnerships with the traditional financial sector.

Digital credit unicorn Kredivo Group was a standout performer during the period. In December 2025, the company secured more than US$100 million in fresh funding led by long-time backer Mizuho Bank. The deal included a sizeable secondary component and was designed to provide long-pending liquidity to early shareholders, including Jungle Ventures, Alpha JWC Ventures, and MDI Ventures. The transaction was followed in January 2026 by Bank DBS Indonesia increasing channeling financing to Kredivo Group to IDR 3 trillion (US$177 million) to meet surging demand for buy now, pay later (BNPL).

In March 2026, the company acquired Timo, one of Vietnam’s earliest digital banks. Final paperwork has been signed, according to a Tech in Asia report, but the transaction has yet to be officially disclosed, and its value remains unknown. Kredivo Group plans to inject US$15 million into the Vietnamese market in the next three years to capitalize on one of the fastest-growing fintech markets in the region.

Formerly known as FinAccel, Kredivo Group operates through its brands Kredivo, KrediFazz, and Krom Bank. Kredivo and KrediFazz are leading digital credit platforms in Indonesia and Vietnam, offering instant credit financing for e-commerce and offline purchases, and personal loans, based on real-time decisioning. Krom Bank, formerly Bank Bisnis Internasional, is the group’s bank entity and the operator of the Indonesian neobank Krom.

Another notable fintech transaction in 2025 was the US$200 million deal secured by cryptocurrency exchange Triv in August. The startup, which offers trading access to over 1,000 crypto assets and claims more than three million registered users, said it would use the proceeds to expand the range of available crypto assets, boost platform liquidity, and launch more innovative products. It also plans to strengthen CryptoWave Media, its crypto-focused news outlet, positioning it as Indonesia’s leading digital asset media platform.

Transactions from both the Kredivo Group and Triv were excluded from the Foundry Collective and Discovery/Shift report funding calculations.

One other key fintech deal in 2025 was secured by Yup, a digital banking brand. The company raised a US$32 million Series C-1 in September to expand its customer base, and enhance its digital banking offerings for unbanked and underserved segments in the Southeast Asian region.

Founded in 2021 under the Finture group, Yup is a fintech platform offering credit access, a Visa payment card, pay‑later services, QRIS payments, e‑money, and merchant promos. It claims to serve more than 50 million merchants, has achieved 5 million downloads on Google Play, and says that its revenues have doubled annually over the past three years.

In parallel to these funding activities, Indonesia’s fintech space moved towards stronger regulation in 2025. Notable developments included rules restricting buy now, pay later (BNPL) services to licensed banks and finance companies only, and stricter governance and risk management standards for payment systems.

A major tech category

Despite the funding plunge in 2025, fintech remained among Indonesia’s core tech startup verticals in 2025, ranking second in total funding volume behind new retail with US$130.9 million.

Fintech is also one Indonesia’s largest and most developed tech verticals, boasting over 400 active players, with around 280 headquartered locally. Among roughly 2,000 tech startups, fintech represents about 20% of the total, according to various estimates.

Some of Indonesia’s most successful startups operate in the fintech field, underscoring the sector’s enduring role as a foundational pillar of Indonesia’s digital economy.

Of Indonesia’s seven unicorn startups, four are fintech companies: Akulaku, DANA, Xendit, and Ajaib. Akulaku is a leading banking and digital finance platform serving more than 10 million customers; DANA is a digital wallet that has reached more than 200 million users in Indonesia; Xendit is a payment gateway, which processes over US$70 billion in payments and more than 500 million transactions annually across seven Asian markets; and Ajaib is an investment platform serving 3 million retail investors.

AI emerges as a prominent vertical

While fintech maintained its prominence in the Indonesian tech landscape in 2025, several other trends also emerged. Most notably, artificial intelligence (AI) rose into a cross-cutting opportunity rather than standalone vertical.

In consumer tech, AI is enabling smarter segmentation, demand forecasting, and inventory optimization, allowing companies to preserve margins in a low-growth, high-competition environment, and remain competitive. In business-to-business (B2B), AI is assisting with workflow automation, customer support, and data-driven decision-making, reducing the need for large operational teams and enabling leaner unit economics.

Policy and governance frameworks are evolving to keep pace with these technological advancements. The Indonesian government is currently drafting a Presidential Regulation on AI, which aims to provide a clear governance framework to encourage ethical, transparent, and accountable AI development, while ensuring continued innovation.

In addition to this regulatory effort, the government is also preparing the National AI Roadmap. This plan is intended to serve as a guideline for the development of an inclusive, responsible, and competitive AI ecosystem, centered around key principles including inclusivity, humanity, and sustainability.

Featured image: Edited by Fintech News Indonesia, based on image by freepik via Freepik