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Investment in Canada’s fintech sector slowed in 2025, following record-high investments the previous year, according to a new report by KPMG International.
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In 2025, investments totalled US$2.4 billion across 113 deals, a drop from the US$9.9 billion invested across 161 deals in 2024, the report said, citing data from PitchBook. The tally includes venture capital, private equity and mergers and acquisitions.
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The report said that, despite the year-over-year drop in headline value, the investment environment in 2025 was more measured and disciplined, with sustained interest in later-stage companies, platform acquisitions and fintech subsectors such as artificial intelligence and digital assets.
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Last year’s investment activity shows investors are seeking mature and stable Canadian fintechs with strong customer penetration and scalable platforms, said Dubie Cunningham, a partner in KPMG Canada’s banking and capital markets practice.
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In the first half of the year, there were 71 transactions worth a total of US$1.4 billion, while the second half had 42 deals, for a total of US$988.6 million. Activity in the second half of the year was driven by fewer but larger transactions, primarily focused on AI and digital assets.
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To compare Canadian dealmaking on an international scale, the report said US$116 billion was invested globally in 2025 across 4,719 deals, up from US$95.5 billion across 5,533 deals in 2024. The United States accounted for US$56.6 billion of that total, up significantly from US$42.4 billion in the previous year.
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Among the Canadian fintech investments in 2025, the three largest were a US$898-million private equity buyout of Converge Technology Solutions by H.I.G. Capital; Wealthsimple’s US$536-million equity raise, co-led by Dragoneer Investment Group and GIC with participation from CPP Investments and existing shareholders; and Ripple’s US$200-million acquisition of the stablecoin payment platform, Rail.
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AI and machine learning led investment activity last year, followed by digital assets — sectors that had the highest number of investments for the fourth consecutive year.
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KPMG Canada’s national technology risk services leader, Kareem Sadek, said the AI sector’s ability to unlock efficiencies and create new value through automation and advanced analytics is driving the rapid acceleration of investor interest in AI-focused fintechs.
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“As financial institutions modernize their operating models, they’re looking for scalable AI solutions that don’t just streamline processes, but fundamentally reshape how decisions are made,” he said.
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Meanwhile, ESG and greentech-focused fintechs, regtechs, payment fintechs, insurtechs and proptechs continued to attract steady investment, while investors remained selective towards cybersecurity and wealthtech firms.
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