The Indian IT sector fuelled the third quarter with its massive deals. Read below to know more about the funds acquisition and diversification.
The Indian technology sector recorded deals worth $1.48 billion in the third quarter of 2025, which marked a significant durability and a major strategic pivot. Compared to Q2, there was a 33 per cent jump in deal volume in this quarter. This massive deal portrayed a value-driven and theme-focused investment.
The big picture in view
In the Grant Thornton Bharat Dealtracker report, it showed that investors are focusing on larger and concentrated bets on mature technologies rather than chasing volumes. This is one of the most important factors in the surge of high-value deals. Investments this quarter increased fivefold compared to the investments in the second quarter, which were valued at $50 million.
This shows strong investor confidence in specific, scalable, and platform-oriented technologies, even amid global macroeconomic pressures.
Where was the money pumped?
Artificial Intelligence (AI): Companies that use artificial intelligence to improve their solutions and scale their growth attracted a major amount.
SaaS (Software-as-a-Service): Private equity and venture capital firms continue to pour money into enterprise-level SaaS platforms.
Enterprise automation: A certain portion of the capital was invested in technologies that help businesses automate processes and improve efficiency.
Deals and market movers
Domestic mergers and acquisitions (M&A) activity reached its highest levels since Q1 of 2022. These mergers were driven by major acquisitions from tech giants, including Wipro ($375 million), Infosys ($151 million), and Hexaware Technologies ($120 million).
Private equity funding accounted for 50 deals at $584 million, which is a 172 per cent increase in value QoQ (Quarter-on-Quarter). Some of the major funding rounds included Fractal Analytics, which raised $172 million, Gupshup raised $60 million, and MoEngage & Whatfix each raised $17 million.
While the high-value deals surged, the early-stage startup funding dropped by 41 per cent to $63 million, reinforcing the trend of investors backing established players over emerging ideas in the current situation.
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