India’s tech sector saw a notable shift in the third quarter of 2025, with deals totaling $1.48 billion. This reflects a move towards high-value investments in areas like AI, SaaS, and automation, according to a Grant Thornton Bharat report.
During this quarter, 80 deals were reported, which is a 33% increase from the previous quarter. A significant highlight was the rise of high-value transactions. Deals over $50 million surged, quadrupling in volume and increasing more than fivefold in value compared to Q2. This suggests that investors are keen on focusing on quality rather than quantity when it comes to tech investments.
The report emphasizes a growing interest in scalable technologies. Raja Lahiri, a partner at Grant Thornton Bharat, noted, “This shift shows a clear focus from volume-driven to value-oriented investments. Investors are now looking for infrastructure-focused deals that can deliver significant returns.”
Domestically, mergers and acquisitions hit their highest levels since early 2022. Key transactions included Altimetriks acquiring SLK Software, showing a strong trend towards consolidation in AI and tech services. Meanwhile, outbound deals like KPIT Technologies’ investment in Swiss firm N-Dream AG reveal an expanded global outlook for Indian tech firms.
Private equity and venture capital activity was strong as well. There were 50 reported deals worth a total of $584 million, marking a 39% rise in volume and a staggering 172% increase in value from the previous quarter. Early-stage funding caught the spotlight with Fractal Analytics raising $172 million and Gupshup securing $60 million.
However, investments in startups in the PE sector saw a moderation, dropping to $63 million across 22 deals. Notable investments included Kluisz AI’s $9.6 million round.
Further, M&A activity in tech service providers more than tripled, reaching 18 deals valued at $657 million. Major players like Wipro, Infosys, and Hexaware were at the forefront, highlighting a shift towards cloud-native and automation-centric strategies.
Overall, this quarter signifies a major transformation in the Indian tech landscape. As domestic capabilities mature and global investment stabilizes, we are likely to see the emergence of innovative companies, especially in deep tech and AI. This changing dynamic reflects the optimism and resilience of India’s tech ecosystem in a rapidly evolving global market.
Source link
indian tech sector, tech deals q3 2025, ai investments india, saas investments india, enterprise automation
