New Delhi, October 13, 2025 – India’s financial services sector witnessed a notable surge in deal activity during the third quarter of 2025, recording 61 deals valued at $7.8 billion — a 39% jump from the previous quarter. This rise was largely powered by three billion-dollar transactions, signaling a strong sense of institutional confidence and a dynamic public market environment.
Fintech Fuels Growth Amid Global Challenges
Among all sub-sectors, fintech stood out as a clear driver of activity. Investor interest remained high in areas like artificial intelligence, digital payments, and process automation. This ongoing focus suggests that, even amid global economic uncertainty, fintech continues to show resilience and future potential.
Highest Quarterly Deal Value Since Early 2024
This quarter also marked the highest total deal value since the first quarter of 2024, underlining a growing appetite for strategic investments, particularly in future-facing sectors. While overall deal volumes saw slight moderation, the emphasis shifted to high-value and long-term investments.
M&A Landscape Remains Steady
In Q3 2025, there were 17 mergers and acquisitions (M&A) valued at $1.5 billion. While deal volumes showed a modest 6% increase, the average deal sizes remained smaller, suggesting a cautious approach by businesses. Domestic transactions dominated in number, accounting for around three-quarters of the M&A deals. However, in terms of value, inbound investments — particularly those from international investors — played a significant role, reinforcing cross-border interest in India’s financial ecosystem.
Private Equity Focuses on Early-Stage Expansion
Private equity activity continued to focus on early-stage funding, particularly Series A and B rounds. These investments were largely aimed at helping companies expand into new regions and markets. The financial services sector attracted a total of $2 billion across 16 M&A and PE deals, representing 77% of the overall deal value for the sector.
Interestingly, just a few transactions contributed the lion’s share of the capital: one billion-dollar deal and four deals exceeding $100 million together accounted for 91% of the sector’s total deal value.
Public Markets Make a Strong Comeback
Another key trend in Q3 was the rebound in public market activity. Two high-profile billion-dollar deals — including a qualified institutional placement (QIP) and an initial public offering (IPO) — made up over half (57%) of the total deal value. This resurgence in public listings helped balance a slowdown in private transactions, highlighting the continued strength of India’s capital markets.
As India’s financial services sector continues to evolve, factors such as domestic policy reforms, particularly around GST simplification, improved acquisition financing frameworks by banks, and a more supportive ecosystem for fintechs could play a major role in shaping future growth. With both domestic and international investors showing sustained interest, the outlook for the sector remains strong, especially in innovation-led areas.