Leading tech companies are adopting and leveraging generative AI to reshape the industry
The Indian technology sector saw 87 deals valued at $1.4 billion in the third quarter this year, a 40 percent surge in values over the previous quarter, a report showed on Thursday.
The deal volumes, however, fell by 13 percent in the July-September period.
The rise of generative AI is reshaping the industry, with prominent tech players actively embracing and leveraging this technology to enhance efficiency across various sectors, according to the report by Grant Thornton Bharat.
“With a substantial 88 percent decrease in deal values compared to the previous year, the tech industry must consider re-evaluating investment strategies. Emphasizing innovation in areas like spacetech, SaaS, AI, and cloud, investors can navigate the evolving landscape,” said Raja Lahiri, Partner and Technology Sector Leader, Grant Thornton Bharat.
In the mergers and acquisitions sector, the third quarter saw 20 deals valued at $882 million, reflecting a 9 percent decline in volumes compared to the previous quarter but a substantial 573 percent increase in deal values.
MapMyIndia invested $1.1 million in Mappls KOGO, an AI-driven travel advisor. Agritech start-up Leads Connect secured $60.2 million from BL Agro Industries. The Proximus Group’s acquisition of a majority stake in Route Mobile for $721 million marked the biggest deal in the SaaS market, according to the report.
In the private equity (PE) landscape, there was a marginal decline in technology deals, with 67 transactions totaling $564 million, reflecting a 14 percent decrease in volumes and a 37 percent decline in deal values compared to Q2 2023.
Nazara Technologies secured funding from SBI mutual fund schemes for $62.2 million in the technology startup segment. Perfios received a substantial $229 million investment from Kedaara Capital, marking one of the largest B2B SaaS deals of the year. There were three IPOs in the IT sector collectively valued at $253 million in the period.
[With Inputs from IANS]
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