Cautious Sentiments Mark Decline in India's Tech Sector Deals

India's tech sector witnessed a decline in investment deals in Q2 2025, with 60 deals valued at USD 460 million. This marks a significant drop from Q1 figures, reflecting cautious investment sentiments. The shift is attributed to a focus on smaller, value-driven transactions amid macroeconomic uncertainties.

In the April-June quarter of 2025, India's tech sector recorded 60 deals worth USD 460 million, according to Grant Thornton Bharat. This marked a significant downturn from the first quarter, highlighting a cautious investment environment amid persisting macroeconomic challenges.

The report revealed a 34% decline in deal volumes and a sharp 79% drop in deal values compared to Q1 2025. Large private equity transactions, including a USD 1 billion IPO by Hexaware Technologies, had previously boosted numbers in Q1.

Raja Lahiri of Grant Thornton Bharat observed a shift from headline valuations to a focus on capabilities, resilience, and monetisation. With a steadier M&A activity and a correction in private equity space, the tech sector recalibrates towards sustainable investments.