Tech startups see 45 M&As in March quarter, most in 2 years

BENGALURU: India’s tech startup ecosystem noticed 45 M&A transactionsin the March quarter of the present calendar yr, marking a 61% soar year-on-year from 28 offers in the corresponding interval final yr, based on knowledge from market intelligence platform Tracxn.Sequentially, the transaction quantity rose from 33 to 45.This is the best variety of startup acquisitions reported because the March quarter of the 2023 calendar yr and comes at a time when market volatility and macroeconomic uncertainty proceed to weigh on strategic decision-making globally.

The median acquisition worth stood at $16.7 million in the March quarter, up 60.6% from $10.4 million in the earlier quarter. However, this stays considerably decrease than the $53.9-million median recorded in Q1 final yr, indicating a continued reset in startup valuations. “M&A activity in India’s tech ecosystem has seen a notable uptick,” a Tracxn analyst stated. “Despite geopolitical tensions, recession concerns, and trade tariff risks, the market has shown signs of recovery. There is a shift in startup strategy – towards leaner operations and profitability – which is making them more attractive to buyers.”