Indian tech sector records deals worth $1.48 billion in Q3: Report

The number and value of deals exceeding $50 million rose sharply, with high-value transactions quadrupling in volume and increasing more than fivefold in value compared to the previous quarter

India's technology sector recorded deals worth USD 1.48 billion in the third quarter of 2025, marking a strategic reset move from volume-led activity to value-driven investments, with improved investor interest in AI, SaaS and enterprise automation, according to a report by Grant Thornton Bharat.

The number and value of deals exceeding USD 50 million rose sharply, with high-value transactions quadrupling in volume and increasing more than fivefold in value compared to the previous quarter.

"Q3 2025 marked a strategic reset in India's tech deal landscape, with 80 deals recorded, up 33 per cent quarter-on-quarter, signalling a move from volume-led activity to value-driven, theme-focused investments. Overall disclosed deal values were USD 1.48 billion, with high-value deals over USD 50 million quadrupling in number and increasing more than five-fold in value compared to Q2.

"The quarter highlighted strong investor and acquirer interest in AI, SaaS and enterprise automation, reflecting a focus on scalable, platform-oriented technologies amid macroeconomic recalibration, global rate expectations and evolving cross-border opportunities," the Grant Thornton Bharat Dealtracker report noted.

Domestic mergers and acquisitions reached their highest level since Q1 2022, led by acquisitions in AI, SaaS, and tech services. Key deals included Altimetriks' purchase of SLK Software and Brilyant IT Solutions' acquisition of Sugansa Solutions.

Outbound transactions also gained traction, exemplified by KPIT Technologies' stake buy in Swiss firm N-Dream AG and Covasant Technologies' US mergers.

Private equity and venture capital deals totalled 50, with a cumulative value of USD 584 million, a 39 per cent rise in volumes and a 172 per cent increase in values from the preceding quarter.

Early- and mid-stage investments dominated, highlighted by Fractal Analytics raising USD 172 million, while Gupshup secured USD 60 million. SaaS platforms MoEngage and Whatfix each raised USD 17 million.

PE investment in startups moderated to USD 63 million across 22 transactions, a 41 per cent drop quarter-on-quarter. Key investments included Kluisz AI (USD 9.6 million), Presolv360 (USD 4.7 million), and Maieutic Semiconductors' AI chip automation funding.

M&A activity in tech service providers tripled to 18 deals worth USD 657 million, with prominent acquisitions by Wipro (USD 375 million), Infosys (USD 151 million), and Hexaware (USD 120 million), underpinning a pivot to cloud-native and automation-first capabilities.

"Q3 2025 reflects a clear shift in India's tech ecosystem, with investors and acquirers prioritising value-driven, infrastructure-focused deals in AI, SaaS, and enterprise automation.

"Early and mid-stage funding, along with selective cross-border M&A, underlines confidence in India's ability to deliver globally scalable, platform-first solutions. As domestic capabilities mature and global capital stabilises, the next wave of breakout companies is expected to emerge from deep tech and AI-native infrastructure," Raja Lahiri, Partner and Technology Industry Leader, Grant Thornton Bharat LLP, said.