look news india
Ahmedabad: Deals worth $63.5 million have been signed in the Indian technology sector in the period July-September 2024. The price has increased by 31 percent on an annual basis. Tech sector consultancy firm Grant Thorton said in its India Q3 DealTracker report that the quarter saw the highest number of deals since Q2 2023 but was the worst quarter of 2024. This figure reflects a policy of more strategic investments rather than acquisitions.
According to a report by Grant Thorton, the recent interest rate cut by the US Fed, India's post-election stabilization along with significant value and volume growth are bringing new momentum to the IT deal landscape. There were 79 deals worth $63.5 million in Q3 2024, representing 5 percent growth in volume and 31 percent growth in value. Of these 79 deals, the value of 12 was more than $2 million.
Merger and acquisition activity picked up again after a significant decline in Q1 2024 and increased 44 percent sequentially to 26 deals in Q3 2024. The value of deals in mergers and acquisitions increased by 205 percent to $11.6 million.
Volumes increased 53 percent year-over-year, but values declined 89 percent, reflecting the absence of big-ticket deals.
The report further said that deal value is not disclosed in about 65 percent of transactions, which also contributes to the decline in overall deal valuations. Additionally, funding activity in the startup ecosystem has increased by 62 percent and 40 percent in annual deal count and funding values, respectively.