Tuesday, 31 March, 2026
Digital Lenders Face Funding Crisis as VC Investment Drops 50% in 2025
By Isha
Venture capital funding for digital lending startups plummeted to $462 million in the first eight months of 2025, down from $1.1 billion in 2024. This 58% decline is attributed to rising defaults and stricter regulatory measures on short-term consumer credit. Only 50 out of 154 fintech deals this year involved digital lenders, signaling a shift toward profitability and asset quality over growth.
Read full story at Economic Times