India’s Tech M&A disclosed value reached $1.2 billion in Q1 2026, a strong start following the record-setting $6.9 billion total in 2025. Strategic buyers continued to dominate, accounting for 95% of the activity. Financial terms were disclosed in 24% of transactions, reflecting ongoing pursuit of high-quality Indian tech assets while maintaining discretion around deal specifics.  


 

After peaking at $22.5 billion in 2021, India’s tech VC funding continued to decline in the following years and remained subdued through 2026. In Q1 2026, funding reached just $3.4 billion — far below peak levels and down sharply from the $11.5 billion recorded in 2025. The median VC funding size of $4M is small compared to the Tech M&A activity in India. Tech M&A. This persistent weakness in venture capital funding combined with lower median investment sizes compared to M&A strategies has pushed more companies toward M&A as a pathway for growth and liquidity, particularly in a market where access to large-scale VC remains highly selective.  

India’s Tech M&A landscape sustained its momentum into 2026, with 37 deals announced in the first quarter. Strategic buyers continued to dominate, accounting for the vast majority of activity, as digital transformation, AI integration, and industry consolidation remained the primary drivers. Private Equity participation also held firm, reflecting ongoing investor appetite for scalable, tech-enabled opportunities. Following a record-setting 2025 with 202 deals — the most active year in the past decade — the strong start in Q1 2026 underscores the resilience and depth of India’s technology M&A ecosystem.