During the third quarter of 2024, the Indian tech sector witnessed deals amounting to US$ 635 million, representing a 31% year-on-year increase, according to the latest Dealtracker report by Grant Thornton Bharat. Despite this rise, deal volumes were the highest since Q2 2023 but marked the lowest for 2024, reflecting a trend towards more strategic investments rather than large acquisitions. Raja Lahiri, a Partner at Grant Thornton Bharat, attributed this growth to the recent interest rate cut by the US Federal Reserve and India’s stable post-election environment, driving both deal value and volume upward. The third quarter saw 79 deals, with a 5% increase in volumes and a notable 31% rise in value compared to the prior quarter. Notably, 12 of these deals were valued at over US$ 20 million.
Merger and acquisition (M&A) activities made a strong recovery, with 26 deals in Q3 2024, marking a 44% sequential rise. Despite the significant rise in M&A volumes, values jumped by 205% to US$ 116 million, compared to US$ 38 million in the previous quarter, even as larger deals were fewer in number. Lahiri also noted that 65% of transactions did not disclose deal values, contributing to the lower overall valuation figures. Investor confidence in India remains robust, with several upcoming IPOs expected to offer strong exit opportunities. Additionally, the startup ecosystem saw a resurgence in funding, with a 62% increase in deal numbers and a 40% rise in funding value year-on-year.
