India’s tech deals rise 33% QoQ in Q3 driven by AI, SaaS, and automation
India’s tech deal landscape recorded a total of 80 deals in Q3 2025, representing a 33% rise from Q2, according to a dealtracker report by Grant Thornton Bharat. According to the report, this marks a shift from volume-driven activity to value-focused investments. Total disclosed deal values reached $1.48 billion. The number of high-value deals over $50 million quadrupled, and their total value increased more than fivefold compared to the previous quarter, the report said.
Mergers and Acquisitions (M&A) in the technology space saw 29 deals worth $743 million in Q3 2025, a 32% increase in volume and a 239% rise in value compared to Q2. Domestic deals, the highest since Q1 2022, drove most of the activity. Acquisitions in AI, SaaS, and tech services led the way.
Meanwhile, the Private Equity (PE) landscape recorded 50 PE and VC deals worth $584 million, up 39% in volume and 172% in value from Q2
Q3 2025 recorded 50 PE and VC deals worth $584 million, up 39% in volume and 172% in value from Q2. On the other hand, public market activity remained slow, with only one IPO and no QIPs, the report said.
Raja Lahiri, Partner and Technology Industry Leader at Grant Thornton Bharat LLP, noted that Q3 2025 showed a clear shift in India’s tech ecosystem. “Investors and acquirers are now focusing on value-driven, infrastructure-focused deals in AI, SaaS, and automation. Early and mid-stage funding, along with selective cross-border M&A, reflects confidence in India’s capacity to deliver globally scalable, platform-first solutions,” he said.
Sectoral trends in tech M&A:
Tech startups saw modest M&A activity, with three deals worth $1.2 million focusing on AI-led automation and content platforms. Key transactions included Screen-Magic’s acquisition of Voxgenie and Foliflex Cables’ purchase of Blinkit AI.
In comparison, tech service providers recorded 18 M&A deals worth $657 million, tripling the previous quarter’s number. Major acquisitions by Wipro ($375 million), Infosys ($151 million), and Hexaware ($120 million) focused on cloud-native and automation-first capabilities.
However, in the enterprise software/SaaS segment, the M&A activity dropped to eight deals worth $85 million, with R Systems International leading the way through its acquisition of Novigo Solutions.
- Published On Oct 28, 2025 at 12:14 PM IST
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