fintech-focused VC firm Ribbit Capital to raise $500 million for its latest flagship fund

Ribbit Capital is preparing to raise $500 million for its latest flagship fund, according to filings with the U.S. Securities and Exchange Commission.

The San Francisco-based venture capital firm, which focuses on financial technology (Fintech), has invested in several Indian fintech unicorns, including CRED, Razorpay, BharatPe and PhonePe.

It has also put money into digital startups such as MoneyView and ZestMoney, and made its first investment in India in 2014 with the insurance aggregator PolicyBazaar.

Growing interest in India's fintech sector

Ribbit Capital's plan to raise $500 million comes after it reportedly raised $800 million in 2023 for its tenth fund, Ribbit Capital X. The new funding, referred to in SEC filings as Ribbit Capital Y, will be smaller than the $1.15 billion that Ribbit secured in 2022.

Despite raising capital on a global scale, the firm has displayed a strong interest in India, where two of its portfolio companies—PhonePe and Groww—are preparing for IPO launch.

PhonePe, which was last valued at $12 billion, is expected to file draft papers by June for a listing in the current calendar year. Walmart has appointed four investment banks—Kotak, Citi, Morgan Stanley and JP Morgan—for the IPO, and the fintech firm is eyeing a $15 billion valuation once it goes public. Meanwhile, retail stockbroker and trading platform Groww has enlisted five investment banks for its own $1 billion-plus IPO, according to a report by Moneycontrol.

India's funding slowdown

While some large deals are on the horizon, India's fintech sector has been facing a funding slowdown for three consecutive years. According to data from market intelligence platform Tracxn, Indian fintech startups raised $1.9 billion in 2024, a drop from $2.8 billion in 2023.

The number of funding rounds declined to 228 in 2024, compared to 324 in the previous year. This downturn follows a record-setting year in 2021 when the country's fintech sector attracted $8.3 billion across 665 deals.

Globally, fintech investments have also fallen, reaching a seven-year low of $95.6 billion in 2024, according to a report by KPMG. Even so, some recent developments—such as a planned IPO by buy now, pay later provider Klarna and rising valuations for Ramp and Stripe—indicate that investor appetite might be improving.