Investments in French fintech are on the rise again, but are benefiting only a handful of players.

French fintech startups raised €1,25 billion in the first half of 2026, a 51% increase compared to the same period last year. According to the Fintech Observatory, this is the best start to the year since 2022. This growth is largely driven by three major deals by Alan, Pennylane, and Morpho, which together account for nearly three-quarters of the total funds raised.

Despite this increase in funding, the number of deals continues to decline. Only 28 funding rounds were recorded in the first six months of the year, a historically low level. Investors are now favoring more mature companies, capable of quickly demonstrating their profitability, at the expense of startups still in the development phase.

A sector undergoing profound transformation

The study also notes an acceleration of consolidation, with 16 mergers and acquisitions since January. At the same time, twenty French fintech companies have ceased operations, illustrating the difficulties faced by the most vulnerable businesses in a more demanding financing environment.

No French fintech company has gone public since the beginning of the year. Among the companies regularly cited as potential candidates are Qonto, Alan, Pennylane, and Ledger. The French fintech ecosystem currently comprises nearly 560 companies, representing approximately 40,500 jobs.