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.

The concentration reflects a shift in investor preference towards scaled companies with established market positions, rather than a broad-based flow of capital across the payments industry.

Consumer-apps attracted the largest share of funding at 53%, followed by business payments at 38%. Payments enablers, including APIs and infrastructure providers supporting the underlying payment rails, accounted for the remaining 9%.

The funding concentration was also evident in companies’ cumulative capital raised over their lifetimes. The 10 best-funded payments companies have collectively raised about $9.4 billion, with Paytm leading at $2.8 billion, followed by PhonePe at $1.7 billion and CRED at $1.5 billion. The three companies remain prominent participants in India’s UPI-led digital payments ecosystem.

UPI has emerged as a key driver of the payments industry’s growth. The platform now accounts for nearly 49% of global real-time payment transactions, according to Tracxn. In FY26, UPI processed transactions worth ₹314 lakh crore, with daily volumes of around 66 crore transactions.

Published - August 21, 2026 09:49 pm IST