Indian tech sector sees deals worth US$ 635 million in the third quarter: Grant Thorton report

The Indian tech sector saw deals worth US$ 635 million during July-September 2024, marking a 31% YoY increase, as per Grant Thornton Bharat's third-quarter Dealtracker report. While the third quarter saw the highest deal volumes since the second quarter of 2023, it recorded the lowest for 2024, indicating a focus on strategic investments over large-scale acquisitions. Grant Thornton Bharat Partner, Mr. Raja Lahiri, highlighted that the recent US Fed interest rate cut, and India’s post-election stability have fuelled momentum with notable value and volume growth. The third quarter of 2024 reported 79 deals worth US$ 635 million, reflecting a 5% rise in volumes and a 31% rise in value compared to the previous quarter. Of these, 12 deals were valued at over US$ 20 million.

M&A activity rebounded after a drop in the first quarter, with 26 deals in the third quarter of 2024, a 44% sequential increase. Deal values surged 205% to US$ 116 million from US$ 38 million in the second quarter, despite M&A volumes rising 53% YoY and values falling 89% due to fewer large deals. Notably, 65% of transactions did not disclose deal values, contributing to the lower overall valuation. He stated that investor confidence in India remains high, especially with upcoming IPOs expected to provide strong exit opportunities. The startup ecosystem also saw improved funding, with a 62% increase in deal numbers and a 40% rise in funding value YoY.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.