India Inc clocks 15% rise in deals space

Deal Pipeline

• 41 M&As at $1.4 bn, an 8% increase in deal volume, but 64% fall in values
• 101 deals in PE space at $4.7 bn, a 17% increase in volumes and a 298% rise in values

New Delhi: India Inc saw 142 deals worth $6.1 billion in January, marking a 15 per cent increase in volumes and a 21 per cent increase in values compared to December 2023, a new report showed on Thursday.

The uptick in the deal activity was witnessed in private equity (PE) and presence of $2 billion investments worth $3.6 billion.

“While technology sectors, spearheaded by startups and e-commerce, continue to drive PE momentum, the emergence of Krutrim SI Designs (co-founded by Ola’s Bhavish Aggarwal) as India’s first unicorn sets an early milestone,” said Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.

“The prevailing positive sentiment suggests a buoyant outlook for deal making in 2024, signalling optimism and strategic evolution in the investment landscape,” Vijetha added.

The Indian mergers and acquisitions (M&A) space recorded 41 M&A deals at $1.4 billion, reflecting an eight per cent increase in deal volume, but a significant 64 per cent decline in values compared to December 2023.

The PE space witnessed 101 deals at $4.7 billion, indicating a 17 per cent increase in volumes and a 298 per cent rise in values compared to 2023, the report said.

Start-ups dominated deal volumes, reaching a high of 69 deals worth $253 million, driven by segments such as retail, fintech, enterprise applications, and health tech, the report noted.