At $280 million for 32 deals in July, the M&A deals witnessed significant downtrend both in terms of deal volumes, by 14 per cent, and deal values by 95 per cent, according to
Cross-border transactions recorded the second lowest, both in terms of deal volumes and values in the last 12 months owing to global tensions.
With 28 per cent of M&A deal volumes each, the start-up and IT sectors continued to dominate deal activity with nine deals each cumulatively valued at $162 million.
"Like many other countries, Asia's third-largest economy has also been grappling with soaring inflation, aggravated by rising commodity prices. A weaker rupee has further bumped up imported inflation," said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.
Nevertheless, start-up, e-commerce and IT led the deal volumes for the month, while "infra, pharma, retail and banking sectors topped the overall value".
"The month saw the birth of only one
While M&A deal activity saw an uptick in deal volumes compared to June, which saw the lowest monthly volumes in the last 19 months, the deal values saw a decline due to lack of high-value transactions and non-disclosure of values in the majority of the deals.
The PE landscape saw 139 deals valued at $1.7 billion.
While PE transactions continued to account for over 80 per cent of overall deal activity, deal values witnessed a significant decline.
"The start-up sector continued to drive the PE deal volumes for July 2022 with a 70 per cent share of volumes, with investment values of $0.6 billion," the report said.
The retail tech segment led the investment volumes in the start-up sector with 20 per cent deals, followed by enterprise application and infrastructure and fintech at 18 per cent each.
The year-to-date (
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