Author: Callum Turcan, Corum Group M&A Analyst/Writer
Mergers and acquisitions have evolved beyond traditional growth strategies—they now serve as powerful drivers of innovation. Well-executed deals offer companies faster entry into new markets, enhanced capabilities, and expanded global reach.
What does this signal for India’s tech sector?
M&A activity is robust. In 2025, 197 deals were announced, surpassing the previous 10-year high set in 2022. This momentum continued into the first half of 2026, with 76 transactions recorded.
What’s driving transaction activity?
India’s strong GDP growth—supported by a rapidly expanding tech sector and favorable demographics, including a young and growing population—has created a conducive environment for dealmaking. The country continues to benefit from global demand for outsourced software development services alongside a steady pipeline of domestic innovation, further accelerated by government initiatives.
As a result, India’s tech landscape is evolving quickly, with buyers competing to capture the next wave of innovation. Well-capitalized acquirers are targeting companies with differentiated technology, integrated product ecosystems and sticky customer bases, often supporting these acquisitions with premium valuations and flexible deal structures.
The takeaway is clear: Tech M&A is no longer just about scale—it’s about maintaining a competitive edge in an incredibly diverse country, where innovation is the key differentiator.
In India, this activity is being shaped by six key themes: FinTech, HealthTech, AI, HospitalityTech, outsourced software development and EdTech.
Starting with our first trend, FinTech. India is a diverse nation, with numerous languages spoken that financial firms need to cater to. Showcasing this trend, India’s Peocit Software Solutions, a provider of core banking and lending software with multilingual functionality, was scooped up in May by the US-based, Constellation Software-backed company Andromeda Software to grow its presence in India.
Moving on to our second trend, HealthTech. Patients in India require access to top-notch healthcare services. Highlighting this trend, Svaas, an Indian AI-native oncology and musculoskeletal health platform that’s a wholly owned subsidiary of Dr. Reddy's Laboratories, was pocketed by UK-based Enspirit in May to ensure the platform generates insights that medical professionals can act on.
Pivoting to our third trend, AI. Companies are moving past relatively simple applications of AI into agentic focused solutions that automate workflows. Illustrating this trend, India’s Techie2Pillar, a specialist in voice and conversational AI, was acquired by Netherlands-based Business Core Solutions in April to expand its Agentic-Service-as-a-Software offering.
There is a lot of activity happening across multiple tech sectors in India as buyers at home and abroad race to get into one of the industry’s hottest markets.
Shifting to our fourth trend, HospitalityTech. With a population of 1.5 billion people, managing hospitality needs requires powerful solutions. Brevistay, an Indian hotel booking platform, sold a 55% majority stake to Indian peer ixigo for almost $7 million in June to create a travel ecosystem that enables hotels to maximize revenue, with the option to acquire the remaining stake later.
Our fifth trend is outsourced software development. India is a popular location for offshore tech development services. Highlighting this trend, Vayavya Labs, an India-based software developer, sold a 73% majority stake to India’s MosChip for over $26 million in April to scale its software-led Product Engineering Solutions business, with the remaining stake to be acquired after March 2028.
Lastly, our sixth trend is EdTech. Making education more accessible in a country as diverse and vast as India is a top priority. Illustrating this trend, Byte Band Technologies, an Indian platform that leverages AI to personalize competitive exam preparation to improve learning outcomes, was purchased by India’s Apartment Eleven Eleven in June to make high-quality learning more accessible.
Now, let’s look at other applications of AI in India and recent developments.
