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

BENGALURU: India’s tech startup ecosystem saw 45 M&A transactionsin the March quarter of the current calendar year, marking a 61% jump year-on-year from 28 deals in the corresponding period last year, according to data from market intelligence platform Tracxn.Sequentially, the transaction volume rose from 33 to 45.This is the highest number of startup acquisitions reported since the March quarter of the 2023 calendar year and comes at a time when market volatility and macroeconomic uncertainty continue to weigh on strategic decision-making globally.

The median acquisition price stood at $16.7 million in the March quarter, up 60.6% from $10.4 million in the previous quarter. However, this remains significantly lower than the $53.9-million median recorded in Q1 last year, indicating a continued reset in startup valuations. “M&A activity in India’s tech ecosystem has seen a notable uptick,” a Tracxn analyst said. “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.”