India's tech sector deals touch almost $1.5B in Q3 2025
What's the story
India's technology sector witnessed a major shift in the third quarter of 2025, according to a report by Grant Thornton Bharat. The sector recorded deals worth $1.48 billion, signaling a transition from volume-led activities to value-driven investments. The report highlights an increased investor interest in artificial intelligence (AI), software as a service (SaaS), and enterprise automation solutions.
Deal dynamics
Surge in high-value transactions
The third quarter of 2025 saw a total of 80 tech deals, a 33% increase from the previous quarter. The report noted that high-value deals (over $50 million) saw a fourfold increase in number and more than fivefold increase in value compared to Q2. This indicates a strong market for large-scale transactions and strategic partnerships within India's tech industry.
Sector focus
Investor interest shifts to AI, SaaS, enterprise automation
The report emphasized strong investor and acquirer interest in AI, SaaS, and enterprise automation. This trend indicates a preference for the scalable platform-oriented technologies amid macroeconomic recalibration and evolving cross-border opportunities. The surge in these sectors highlights their potential as key drivers of growth and innovation within India's tech ecosystem.
M&A activity
Domestic M&A activity peaks
Domestic mergers and acquisitions (M&A) in India's tech sector hit their highest level since Q1 2022, driven by acquisitions in AI, SaaS, and tech services. Notable deals included Altimetriks's acquisition of SLK Software and Brilyant IT Solutions's buyout of Sugansa Solutions. Outbound transactions also gained momentum with KPIT Technologies's stake purchase in Swiss company N-Dream AG and Covasant Technologies's US mergers.
Investment surge
PE and VC deal surge
Private equity (PE) and venture capital (VC) deals in India's tech sector totaled 50 with a cumulative value of $584 million. This marks a 39% increase in volumes and a whopping 172% jump in values from the previous quarter. Early- and mid-stage investments dominated this period, with Fractal Analytics raising $172 million while Gupshup secured $60 million.
Funding highlights
SaaS funding rounds
SaaS platforms MoEngage and Whatfix each raised $17 million during this period. However, PE investment in start-ups moderated to $63 million across 22 transactions, a 41% drop quarter-on-quarter. Key investments included Kluisz AI ($9.6 million), Presolv360 ($4.7 million), and Maieutic Semiconductors's AI chip automation funding round. M&A activity among tech service providers tripled to 18 deals worth $657 million. Major acquisitions were made by Wipro ($375 million), Infosys ($151 million), and Hexaware ($120 million).