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Clock’s ticking for digital lenders as VC funding plunges 50% in 2025 - The Economic Times

Venture funding for digital lending startups has fallen by more than half year-on-year in the first eight months of 2025 as rising defaults and regulatory crackdowns on short-duration consumer credit weigh on the sector.Funding into digital lending startups slumped to $462 million between January and August 2025 from $1.1 billion a year earlier, according to data from market intelligence platform Tracxn.Only around 50 of the 154 fintech deals reported this year involved digital lenders, the data...

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