In the first quarter of 2026, India's fintech sector raised $513 million, showing a 2% increase from $503 million in Q1 2025, but a 9% decrease from the previous quarter. The number of funding rounds plummeted from 99 to 45, indicating that while overall capital remains stable, it is being allocated to fewer companies. Investors are becoming more selective, with the average cheque size rising significantly. Notably, Weaver Services, a housing finance platform, raised $156 million, accounting for nearly one-third of the total funding. Online lending was the standout sector, capturing 60% of the total funding. Geographically, Mumbai emerged as the leading hub, accounting for 61% of total funding, a major shift from Q1 2025 when it only accounted for 9%. Late-stage investments saw a 126% increase, totaling $273 million, while early-stage funding fell by 47% to $214 million. This trend indicates a preference for investing in more mature companies with proven business models.