Asian WealthTech Funding Drops 58% Year-on-Year as Investor Caution Deepens

The Asian WealthTech sector saw a sharp year-on-year funding decline in Q3 2025 but showed early signs of recovery quarter-on-quarter. A total of 31 deals were recorded, only slightly below the 32 deals completed in Q3 2024, marking a 3% decline in activity. Total funding reached $469.6 million, down 58% YoY from $1.1 billion last year, though the previous period included two deals exceeding $300 million each. Adjusted for those outliers, the actual year-on-year decline narrows to roughly 12%, suggesting that market fundamentals remain more resilient than headline numbers imply. 

On a sequential basis, investment activity strengthened notably. Deal count rose from 22 in Q2 to 31 in Q3, a 41% increase, while total funding climbed 87% from $251.5 million. The quarter-on-quarter improvement points to a potential bottoming-out of the market as investors cautiously re-engage. Rather than being driven by macroeconomic concerns, the slowdown appears tied to venture capital availability, with VCs facing longer fundraising cycles and tighter deployment strategies. 

The average deal size reached $15.1 million, down 49% year-on-year but up 33% from the prior quarter’s average. This reflects a pivot toward smaller, strategic rounds as investors focus on portfolio support and disciplined capital allocation. Taken together, the data suggest that Asian WealthTech funding is stabilizing, positioning the sector for a gradual recovery as capital formation improves in 2026. 

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