Tech Deal Tally Plunges In Apr-Jun As Macro Headwinds Drive Caution: Grant Thornton Bharat
The April-June quarter numbers slacked 34% in volumes but fell even more sharply (79%) in terms of deal values compared to the first quarter of 2025.
India's tech sector logged 60 deals worth $460 million in the April-June quarter of 2025 (including IPOs and QIPs), reflecting cautious investment sentiments, marking a notable decline from the first quarter levels according to Grant Thornton Bharat.
The April-June quarter numbers slacked 34% in volumes but fell even more sharply (79%) in terms of deal values compared to the first quarter of 2025.
"India's tech sector recorded 60 transactions valued at $460 million, including IPO and QIP activity...This reflects a more cautious investment environment amid ongoing macroeconomic headwinds," Grant Thornton Bharat second quarter 2025 Technology Dealtracker revealed.
The first quarter 2025 scores were boosted by large-ticket private equity transactions and a $1 billion IPO by Hexaware Technologies, it noted.
If public market activity were to be excluded, the quarter reported 58 deals worth $434 million, down 35% in volume and 61%t in value over the previous quarter.
The correction in second quarter shows a recalibration of investor appetite toward smaller, value-driven transactions in a more measured market, the report said.
Raja Lahiri, Partner and Technology Industry Leader, Grant Thornton Bharat, believes that H1 2025 marked a shift from momentum to maturity in India's tech dealmaking.
"Investors are no longer chasing headline valuations; they're backing capabilities, resilience, and monetisation clarity. Whether it's enterprise SaaS, AI-led infra, or outbound consolidation, the capital is selective but serious," he observed.
Indian tech remains the engine, but with sharper questions, deeper diligence, and more grounded conviction, Lahiri added.
Mergers and Acquisitions activity remained relatively steady in second quarter 2025, recording 22 deals. This reflected a slight dip in volume but accompanied by a sharp 133% surge in values to $219 million compared to the previous quarter.
This rise was primarily driven by two high-value cross-border transactions totalling $169 million, which contributed 84 per cent of total M&A value.
While domestic deals led in volume with a 50% share, cross-border activity, particularly with the USA, dominated in value terms.
The quarter also saw Zaggle Prepaid Ocean Services make two strategic domestic acquisitions in the Software-as-a-Service (SaaS) and tech services space, affirming ongoing interest in platform consolidation and vertical integration.
The rebound in deal value signals a return of larger, disclosed transactions and suggests renewed global investor confidence amid improving capital flow visibility and macroeconomic stability, it said on the M&A landscape.
Private equity space, on the other hand, saw a sharp correction in Q2 2025, with deal volumes falling 45% to 36 and values falling 79% to $215 million compared to the previous quarter.
The absence of any high-value transactions (over $100 million), in contrast to three such deals in Q1 that together made up over half the value, drove this steep decline, as per the report.
"This recalibration reflects heightened investor caution amid tighter capital conditions, conservative LP sentiment, and valuation mismatches, particularly in the tech and growth equity segments," it said.
That said, early and growth-stage investments in SaaS and B2B tech continued to draw interest, indicating sustained belief in scalable, digital-first business models, albeit at smaller cheque sizes.
