About Embedded Finance
There are 4.33K companies in the Embedded Finance sector across the world, with 1.63K funded companies having collectively raised $78B in venture capital money and private equity. Overall 797 of these are Series A+ funded and the sector has seen the creation of 31 Unicorns.
Embedded Finance sector has seen 338 acquisitions and 64 IPOs. This represents almost 9.3% of all such companies - which is higher than the 4.3% exit rate of tech companies in general.
This sector includes companies providing solutions for Non-Financial companies to integrate/embed financial services like banking, payments, lending, etc with their main offerings.
Embedded Finance sector is also known as Embedded Finance Solutions, Advanced Embedded Finance or Digital Embedded Finance.
Companies included in Embedded Finance sector
It includes companies that are providing embedded banking, embedded insurance, embedded lending, and embedded investment solutions.Companies excluded in Embedded Finance sector
It excludes companies that are using embedded finance solutions, payment gateways, banking software suite, Internet First Lenders, Internet First Insurers, and Internet First BankMarket Map of Embedded Finance
The market map of Embedded Finance gives a visual overview of the sector, showing key business models, their interactions in the value chain, and industry evolution.
Reports related to Embedded Finance
Here are some reports related to Embedded Finance sector:
Free
Embedded Finance - Sector Report
Edition: July, 2026 (89 Pages)
Premium
Embedded Finance Investor Landscape
Edition: June, 2026 (10 Pages)
View all reports related to Embedded Finance. Sign up today!Top Companies in Embedded Finance
There are more than 4.33K companies in Embedded Finance. Affirm is the top Embedded Finance company globally, ranked using Tracxn Score (what's this?).
Here are 5 of the top Embedded Finance companies globally:
Company | Description | Location | Founded | Current Stage | Private Funding Raised |
|---|---|---|---|---|---|
Provider of point of sale financing solutions for consumers and merchants | San Francisco (United States) | 2012 | Public | $1.22B | |
Provider of payment and business banking solutions for enterprises | Bengaluru (India) | 2014 | Series F | $742M | |
Developer of an online platform for point-of-sale financing | Stockholm (Sweden) | 2005 | Public | $4.19B | |
Provider of integrated point of sale and business management solutions | San Francisco (United States) | 2009 | Public | $520M | |
Provider of purchase financing solutions for businesses | Riyadh (Saudi Arabia) | 2019 | Series E | $604M |
Companies founded year-on-year in the Embedded Finance sector
81 new startups have been founded so far in 2026 in the Embedded Finance sector. 394 Embedded Finance startups were founded in 2021 - this is the most number of startups founded in any year in the last 10 years.
- Total Number of Companies
Year | No. of companies |
|---|---|
2026 | 81 |
2025 | 74 |
2024 | 120 |
2023 | 219 |
2022 | 265 |
2021 | 394 |
2020 | 386 |
2019 | 323 |
2018 | 327 |
2017 | 266 |
Companies founded across countries in the Embedded Finance sector
United States has 1,128 Embedded Finance startups, the most by any country, followed by United Kingdom which has 435 startups and India which has 421.
- Total Number of Companies
Country | No. of companies |
|---|---|
United States | 1,128 |
United Kingdom | 435 |
India | 421 |
Brazil | 134 |
Canada | 122 |
Germany | 114 |
Singapore | 107 |
China | 103 |
Australia | 96 |
Nigeria | 65 |
Stage-wise distribution of the Embedded Finance sector
Out of the total 4,328 Embedded Finance companies, 1,630 have secured funding. Among them, 797 have reached Series A or higher, and 591 to Series B or beyond.
Founded - 4,328
Funded - 1,630
Series A+ - 797
Series B+ - 591
Series C+ - 485
Company Stage | No. of companies |
|---|---|
Founded | 4,328 |
Funded | 1,630 |
Series A+ | 797 |
Series B+ | 591 |
Series C+ | 485 |
Want to know more about Embedded Finance ? Signup and explore Tracxn for free
- 4.3K+ Total Companies
- $78B+ Total Funding
- 1.6K+ Funded Companies
- 60+ IPOs
- 335+ Acquisitions
Funding Trends in the Embedded Finance sector
Total funding year-on-year in the Embedded Finance sector
The Embedded Finance sector saw a total funding of more than $71.3B in the last 10 years. The most amount of funding was in 2021 at more than $12.1B. There has been a total funding of $5.46B in 2026 till date.
- Total Funding
Year | Total Funding |
|---|---|
2026 | $5.46B |
2025 | $10.2B |
2024 | $3.91B |
2023 | $9.98B |
2022 | $10.8B |
2021 | $12.1B |
2020 | $6.53B |
2019 | $4.35B |
2018 | $5.44B |
2017 | $2.58B |
Total funding across countries in the Embedded Finance sector
In the last 10 years, Embedded Finance startups in United States have recieved the highest funding among all countries - $23.4B. United Kingdom follows with $11.4B and India with $2.79B.
- Total Funding
Country | Total Funding |
|---|---|
United States | $23.4B |
United Kingdom | $11.4B |
India | $2.79B |
Singapore | $1.91B |
Germany | $1.61B |
France | $1.53B |
Brazil | $1.52B |
Canada | $1.19B |
Australia | $867M |
China | $822M |
Total funding amount raised by stage in the Embedded Finance sector
Over the last 10 years, the Embedded Finance sector have seen $2.1B into Seed Stage funding rounds, $14.1B into Early Stage funding rounds and $20.5B go into Late Stage funding rounds.
Funding Stage | Total Funding |
|---|---|
Debt | $29.3B |
Late Stage | $20.5B |
Early Stage | $14.1B |
Post IPO | $3.21B |
Seed Stage | $2.1B |
ICO | $298M |
Grant | $122M |
PE | $68.5M |
Recent Funding Rounds in Embedded Finance
In the year 2026, till August 2026, Embedded Finance companies have raised $1.86B in equity funding across 69 rounds.
In the same period last year (i.e. till August 2025), Embedded Finance companies had raised $2.18B across 101 rounds.
So, 2026 has seen a 15.02% drop in funding in Embedded Finance companies as compared to 2025.
Here are some recent, important funding rounds in Embedded Finance:
Company | Round Raised | Amount Raised | Funding Date | Investors |
|---|---|---|---|---|
Series A | 9208 | Aug 27, 2026 | ||
Series C | 5520 | Aug 24, 2026 | ||
Series A | 2965 | Aug 19, 2026 | ||
Seed | 1060 | Aug 18, 2026 | ||
Series A | 6512 | Aug 05, 2026 |
Top Investors in Embedded Finance
Y Combinator is the top investor in Embedded Finance companies based on number of companies invested.
Here are some top investors in Embedded Finance:
Investor | Location | Top Portfolio Companies |
|---|---|---|
Mountain View (United States) | ||
Sunnyvale (United States) | ||
New York City (United States) | ||
New York City (United States) | ||
New York City (United States) |
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M&A activity in Embedded Finance
In the year 2026, till August 2026, 17 acquisitions happened in Embedded Finance sector. Last year, in 2025, a total of 38 acquisitions happened in Embedded Finance sector.
Here are some recent, important acquisitions in Embedded Finance:
Company | Acquisition Type | Acquisition Date | Acquirers |
|---|---|---|---|
Business Acquisition | Aug 14, 2026 | ||
Business Acquisition | Aug 12, 2026 | ||
Business Acquisition | Aug 06, 2026 | ||
Business Acquisition | Aug 03, 2026 | ||
Business Acquisition | Jun 24, 2026 |
Acquisition trends in Embedded Finance
Here are the acquisition trends in Embedded Finance:
- Total Number of Acquisitions
Year | No. of companies |
|---|---|
2026 | 17 |
2025 | 38 |
2024 | 25 |
2023 | 43 |
2022 | 38 |
2021 | 47 |
2020 | 34 |
2019 | 23 |
2018 | 24 |
2017 | 12 |
IPOs in Embedded Finance
In the year 2026, till September 2026, 1 IPO happened in Embedded Finance sector.
Here are some recent, important IPOs in Embedded Finance:
Company | IPO Date | Exchange Symbol |
|---|---|---|
Sep 01, 2026 | Canadian Securities Exchange (CSE) | |
Nov 04, 2025 | Johannesburg Stock Exchange (JSE) | |
Oct 24, 2025 | Tokyo Stock Exchange (TYO) | |
Sep 10, 2025 | New York Stock Exchange (NYSE) | |
May 15, 2025 | Athens Exchange (ATHEX) |
Colleges which produce the most Embedded Finance companies
Companies founded by alumni from top colleges in the Embedded Finance sector
Most number of Embedded Finance startups have been founded by alumni from Stanford University, Harvard University and Harvard Business School.
College | No. of companies |
|---|---|
Stanford University | 37 |
Harvard University | 36 |
Harvard Business School | 20 |
Massachusetts Institute of Technology | 17 |
Columbia University | 16 |
University of Pennsylvania | 15 |
Wharton School | 15 |
University of Oxford | 14 |
IIT Delhi | 13 |
IIT Bombay | 12 |
Total funding in companies founded by alumni from top colleges in the the Embedded Finance sector
In the last 10 years, Duke University graduates' Embedded Finance companies have raised the most funding among top colleges. Harvard University alumni are second, and Wharton School alumni are third.
College | Total Funding |
|---|---|
Duke University | $4.36B |
Harvard University | $4.01B |
Wharton School | $3.63B |
University of Michigan - Stephen M. Ross School of Business | $3.41B |
Harvard Business School | $2.68B |
Stanford University | $2.59B |
Columbia University | $1.96B |
Massachusetts Institute of Technology | $1.95B |
Yale University | $1.42B |
Tel Aviv University | $1.4B |
Top News in Embedded Finance
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Experian and JPMorgan Enhance Account Verification in Payment WorkflowsPYMNTS.com•Aug 29, 2026•Experian, J P Morgan, iPiD
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iServeU Partners with Maximize Money to Scale Gift Card OfferingsBusinessnewsthisweek•Aug 27, 2026•iServeU
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Commercial Funding Partners Selects LTi Technology Solutions' ASPIRE PlatformEquipment Finance Advisor•Aug 17, 2026•LTi Technology Solutions
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Optimal Blue Launches Virtual Economist and AI Labs to Enhance Mortgage Capital MarketseNewsChannels•Aug 10, 2026•Optimal Blue
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Perpetuals Reports 380% Hypothetical Return in Backtest of AI Engine for Risk-Free Trading PlatformGlobal Fintech Series•Aug 07, 2026•Perpetuals
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Sezzle Shares Rebound Amidst Strong 2026 Business Expansion and Anticipation of Q2 EarningsCrowdfund Insider•Aug 03, 2026•Sezzle
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SOLOWIN HOLDINGS Partners with ATTRUS to Expand Digital Payments in Latin Americacitybuzz•Jul 23, 2026•AlloyX
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Sezzle Recognized as a World's Top Fintech Company, Best Online Platform, and Top Employer for 2026GlobeNewswire•Jul 22, 2026•Sezzle
