Tech M&A in India on a Record Path

Tech M&A activity in India is on a record path. With 135 deals in the first half of 2025, the number of M&A deals almost reached 2024's full year total of 145, and is on track to set a ten year record, eclipsing the previous high of 186 deals in 2022. Deal values are growing fast too. Disclosed M&A deal value in H1 2025 was $1.7 billion, already exceeding 2024’s full-year total of $1.1 billion. The actual deal value is higher given that only 30% of the transactions disclosed deal values in the first half of 2025. 

Underlying this surge is India's robust economic growth. Other factors include the demand for expertise in key technology areas, the rapid digitization of the country, as well as favorable government policies for investors.    

Robust economic growth

India is currently one of the world's fastest-growing major economies. According to the International Monetary Fund (IMF), the Indian economy is expected to grow 6.4% in both 2025 and 2026. India's tech sector is riding this growth wave, with expectations of over $300 billion in revenue by FY 2006 ‒ a more than 5% increase from FY 2025. This growth climb makes Indian tech companies attractive targets for financial and strategic buyers both foreign and domestic. 

For example, in H1 2025, U.S.-based PE firm New Mountain Capital acquired a majority stake in Access Healthcare, an Indian revenue cycle management (RCM) group, for $2 billion. Access Healthcare partners with many of the largest U.S.-based healthcare organizations to deliver RCM operations. The deal highlights the growing demand for Indian companies that provide tech-driven healthcare outsourcing ‒ an Indian market valued at over $50 billion.

Also, in a recent domestic deal, Finwizz Financial Services, an Indian company offering loan products within the financial services sector, merged with Indian IT and services company Mywish Marketplaces (Wishfin) to create a new entity focused on financial product distribution. Mergers such as these are indicative of the deal activity happening in Indian fintech, a technology sector that is booming with compound annual growth rate (CAGR) projections of over 30% in the next five years.

Demand for technology expertise

Buyers both international and in India are increasingly acquiring companies to gain critically needed expertise in technologies such as artificial intelligence (AI), data analytics, cybersecurity, and cloud computing. There were many examples in H1 2025 of M&A deals involving Indian companies driven by the need to acquire technology expertise. Here are some of them:

• TalentSprint, an Indian provider of online education programs focused on generative AI, machine learning, and business analytics, was acquired by multinationaI professional services company Accenture.  TalentSprint, with its deep-tech education programs, will help Accenture meet the growing demand for skilled professionals in areas like AI, data science, and digital transformation.
• In India, AI-powered data analytics company Straive acquired complementary company SG Analytics to add its expertise in data analytics and AI operationalization in sectors such as banking, financial services and insurance, and media and telecom.
• India-based digital services firm Infosys acquired Australian cybersecurity firm The Missing Link. With the deal, Infosys gains a group of cybersecurity professionals highly skilled in areas like Red Team and Blue Team services.
• U.S.-based digital services company Improving bought InfraCloud, a company specializing in AI cloud services. Although InfraCloud is headquartered in the U.S., its primary workforce is based in India. The acquisition enables Improving to leverage the expertise of the offshore team in cloud-native technologies such as Kubernetes, allowing the company to expand its service offerings.

In addition, Indian technology startups, which represent a large and skilled talent pool, are attracting significant attention from buyers as a way to pick up technology expertise.  For instance, in H1 2025, Movate, a U.S. provider of digital technology services, bought Prescience, an Indian startup that specializes in data science and AI-driven solutions for various sectors. Driving the deal was Movate's desire to integrate AI into its service offerings and deliver scalable enterprise-grade AI solutions.

Also, U.S.-based networking solutions company Netgear acquired Indian cybersecurity startup Exium, a company with expertise in developing and deploying networking and security solutions at scale, particularly in the (Secure Access Services Edge (SASE) space. With the purchase, Netgear will be able to offer a fully integrated network and security platform, including a SASE solution, to address the growing cybersecurity needs of distributed workforces and hybrid work environments.

Rapid digitization 

India is experiencing a rapid digital transformation across various sectors such as banking, financial services, insurance, healthcare, retail, and manufacturing, creating a strong demand for innovative tech solutions and fueling tech M&A deals. These sectors are leveraging technologies such as AI, cloud computing, big data, and IoT to improve efficiency, enhance customer experiences, and drive innovation. 

India’s fintech sector, for instance, is rapidly adopting digital solutions for faster, more convenient, and secure transactions. Companies are making deals to acquire technologies that are transforming banking, payments, and wealth management.  As an example, in H1 2025, India-based brokerage platform provider Groww acquired Indian wealth management firm Fisdom for $150 million. Groww will leverage Fisdom's wealth management platform and technology to expand its offerings into the wealth management sector.

In India's healthcare sector, AI and machine learning are being used for disease prediction, diagnosis, and personalized treatment plans. Telemedicine and remote patient monitoring are also becoming more prevalent as evidenced by M&A deals such as digital healthcare platform provider MediBuddy's H1 2025 acquisition of vHealth to expand access to healthcare, particularly in underserved areas. Telehealth is a rapidly growing segment of the Indian healthcare market, driven by factors such as increased smartphone and internet penetration, government initiatives, and the need for cost-effective and accessible healthcare solutions.

And e-commerce is booming in India's retail sector, where digital payments, personalized recommendations, and online shopping experiences are becoming the norm. Companies offering e-commerce solutions are hot targets for acquisition. One recent example is Amazon's purchase of Indian buy-now, pay-later startup Axio for over $150 million. The purchase is part of Amazon's push into financial services in the Indian market. Axio, formerly known as Capital Float, provides credit to individuals and households at the point of sale on major e-commerce platforms. 

Digital transformation in India is expected to accelerate in the future, potentially reaching one fifth of the country's GDP by 2030.

Favorable government policies

Indian government policies such as streamlined Foreign Direct Investment (FDI) regulations are attracting foreign companies to establish a presence in India and stimulating M&A deals. 

For instance, New Mountain Capital's acquisition of a majority stake in Access Healthcare was aided by India's supportive regulatory environment for foreign investment in the healthcare sector.

And taking advantage of India's removal of an FDI limit in the insurance sector, Swiss insurance company Zurich Insurance Group acquired a 70% stake in India-based Kotak Mahindra General Insurance for approximately $488 million. 

India's decision to allow 100% FDI in the insurance sector is expected to attract more foreign players, which could lead to increased acquisition activity in this sector the future. 

In addition, the Indian government streamlined compliance processes and reduced redundant regulations. This is particularly true in the Indian financial sector, where it has already stimulated deals. For instance, aided by a relaxation of some Indian banking regulations such as ownership limits, Japanese giant Sumitomo Mitsui Banking Corporation (SMBC) acquired a 20% stake in India's YES BANK for over $1.5 billion in H1 2025.

In general, India's regulatory environment has become more business-friendly, with streamlined processes and a commitment to aligning with global standards.

Summary

India's robust economic growth, demand for leading-edge technologies, continued digital transformation and innovation, and government incentives are creating a dynamic environment that is highly attractive for financial and strategic acquirers, and driving tech M&A activity in India on a record path in 2025.