India, July 29 -- Emerging from the throes of the funding winter, Indian startups are on the mend. Funding numbers are improving, the growth-at-all-cost era appears over and investors are loosening their wallets as founders prioritise strong unit economics and sustainable business models.

Leading the charge is the fintech sector, which continues to demonstrate its foundational strength and enduring appeal to investors. As per Inc42's 'State Of Indian Fintech Report H1 2025', homegrown fintech startups raised more than $1.6 Bn in the first half (H1) of the ongoing calendar year, up 60% from $1 Bn raised in the year ago period.

Sequentially, too, funding rose 7% from $1.5 Bn in H2 2024.

The higher capital inflow into the sector came on t...