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India’s technology sector witnessed a strategic realignment during the ythird quarter of Calender year 2025, with deal activity accelerating and shifting decisively toward high-value, theme-driven investments. According to the Grant Thornton Bharat Dealtracker, a total of 80 deals were recorded during the quarter — a 33% jump over the previous period — as investors zeroed in on AI, SaaS, and enterprise automation opportunities.The quarter saw disclosed deal values reach US$ 1.48 billion, propelled by a sharp uptick in transactions exceeding US$ 50 million, which quadrupled in volume and rose more than fivefold in value compared to Q2 2025. This surge reflects investor appetite for scalable, platform-first technologies, amid an evolving global funding landscape and stabilising macroeconomic conditions. according to the report.“Q3 2025 marks a clear pivot in India’s tech ecosystem, with capital chasing infrastructure-led, AI-native growth,” said Raja Lahiri, Partner and Technology Industry Leader at Grant Thornton Bharat LLP. “Selective cross-border M&A and maturing domestic capabilities signal India’s growing role in building globally scalable tech platforms,” he added.The mergers and acquisitions segment logged 29 deals worth US$ 743 million, up 32% in volumes and 239% in value quarter-on-quarter. Domestic deals — the highest since Q1 2022 — dominated activity, led by acquisitions in AI, SaaS, and IT services. Notable transactions included Altimetrik’s buyout of SLK Software and Brilyant’s acquisition of Sugansa Solutions.Outbound momentum strengthened as well, with three cross-border deals above USD 100 million contributing 87% of total M&A value, led by KPIT’s stake in Swiss firm N-Dream AG and Covasant’s US mergers, underscoring India’s expanding global tech footprint.Also Read: India's AI Investment to Grow 38% Annually, Agentic AI Leading the Charge | Republic WorldPrivate equity and venture capital activity climbed sharply, with 50 deals totaling USD 584 million, representing a 39% rise in volume and 172% growth in value over Q2. Mid-sized rounds dominated the landscape, led by Fractal Analytics’ USD 172 million raise and Gupshup’s USD 60 million funding. SaaS majors MoEngage and Whatfix also secured USD 17 million each, reflecting sustained investor conviction in enterprise-focused models.Public listings remained subdued, with only one tech IPO — Aditya Infotech’s USD 151 million issue — and no QIP activity, signalling continued valuation caution among listed players.As India’s tech investment cycle matures, Grant Thornton expects the next phase of growth to be shaped by deep-tech and AI-native infrastructure companies, setting the stage for a more value-driven deal landscape in 2026.
