The January edition of Dealtracker provides a comprehensive overview of the deal ecosystem in India, highlighting key trends and insights across various sectors. The month witnessed a strong start to the year, building on the momentum from 2024, with a notable increase in deal volumes and values across multiple sectors. The retail and consumer sector led the overall deal activity, driven by significant investments in the food processing and personal care segments. The energy and natural resources sector also experienced a remarkable upswing, fueled by a billion-dollar transaction in the renewable energy space. Meanwhile, the IT and ITes sector recorded significant growth, driven by investments in the SaaS and tech start-up segments. As the year unfolds, the Union Budget 2025 is expected to play an essential role in shaping investment trends across various sectors, with policy support and strategic budget allocations set to boost economic growth and deal-making activity. 

The retail and consumer sector led the overall deal activity for the month

Top sectors based on deal volume
Top sectors based on deal volume

Key insights from the Monthly Dealtracker: January 2025

January 2025 witnessed two billion-dollar deals and 13 high-value deals (≥ USD 100 million) totalling USD 6.1 billion compared to two billion-dollar deals and nine deals (≥ USD 100 million) totalling USD 8 billion (including  USD 5 billion mega-merger of Aster DM Healthcare- Quality Care) in December 2024. As a result, the average deal size dropped 

Cross-border M&A activity remained stable in terms of volume, with 19 deals, but saw a significant 4.1-fold increase in value to USD 2.7 billion, compared to the previous month. This surge was mainly driven by Wilmar International's acquisition of a 31% stake in Adani Wilmar's staple business, which accounted for over half of the cross-border deal values. Excluding this transaction, the segment still recorded three high-value deals totalling USD 1 billion, highlighting the dominance of large deals not seen since March 2024. January 2025 also witnessed the highest number of high-value deals (≥ USD 100 million) since December 2023.

The Retail and Consumer sector led the deal activity in January 2025, registering an increase in deal volumes and values by 46% and 4%, respectively, over December 2024. The sector saw three high-value deals (> USD 100 million) accounting for nearly 25% of the total deal values. The food processing segment was a key driver of growth, led by Wilmar International's billion-dollar acquisition of a 31% stake in Adani Wilmar's staple business.

The Energy and Natural Resources sector saw a remarkable upswing, with deal values soaring nearly 30 times and volumes increasing by 43% month-over-month. The Energy and Renewables segment dominated the sector's deal activity, capturing 60% of volumes and a staggering 98% of values. The Union Budget's incentives and global commitments to clean energy have created a favourable environment, leading to substantial growth and generating investor interest in the sector.

The IT & ITes sector recorded the second-highest volumes, with deal values increasing 2.6 times from the previous month. This significant surge was fueled mainly by Everstone Capital's USD 200 million investment in Wingify, one of the largest deals in the SaaS segment, accounting for approximately 47% of the sector's total value. SaaS companies dominated the sector's deal values, holding an 85% share, while tech start-ups led volumes, contributing 52%.

2025 starts strong on deal front despite moderate value growth
Shanthi Vijetha, Partner, Due Diligence, Grant Thornton Bharat
January 2025 started strong for deal activity, building on the momentum from 2024. The month saw 198 deals worth USD 7.5 billion, marking a 19% increase in volumes, despite a 21% decline in values. This decline is largely attributed to the USD 5 billion merger witnessed in the previous month. Barring this merger, deal values witnessed 66% increase driven by two deals in the billion-dollar club and 13 deals =>USD 100 million totaling USD 6 billion. Notably, both M&A and PE deal activity have consistently increased month-on-month since November 2024, highlighting a positive momentum in deal making. M&A activity rose by 15%, driven by domestic deals constituting nearly 72% of the activity, although values dipped by 30% from December 2024. As 2025 unfolds, the new Union Budget is expected to be a key driver for shaping investment trends in the year across multiple sectors. With policy support and strategic budget allocations, it sets the stage for boosting economic growth and heightened deal making activity."
Shanthi Vijetha Partner, Due Diligence, Grant Thornton Bharat
Monthly Dealtracker: January 2025

Monthly Dealtracker: January 2025

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