Indian Tech Sector Booms: Mega Deals and Strategic Shifts in 2024

The Indian tech sector saw deals worth USD 635 million in Q3 2024, marking a 31% increase in value year-on-year. Grant Thornton Bharat's report highlights a resurgence in deal volumes post-2023, driven by strategic investments. M&A activity also rebounded, with a significant rise in deal volumes and values.

The Indian tech sector experienced a significant upswing in deal activity, reaching USD 635 million in the third quarter of 2024. This marks a 31% rise in value compared to the previous year, according to a recently released report by Grant Thornton Bharat.

The Q3 Dealtracker report paints a picture of a sector engaged in strategic investments rather than large-scale acquisitions. Raja Lahiri, Partner at Grant Thornton Bharat, attributes this momentum to a recent US Fed interest rate cut and India's post-election stability, sparking renewed interest and growth.

Mergers and Acquisitions (M&A) in the tech sector rebounded from earlier lows, achieving a 205% increase in deal values, despite an overall decline due to an absence of large-scale deals. The report underscores the robust investor confidence in India's market potential, fueled by increased funding activity in startups and anticipated IPOs offering promising exit opportunities.

(With inputs from agencies.)