**Record Outbound M&A Activity by Indian Startups in 2025**
In 2025, Indian companies achieved a remarkable milestone by engaging in 26 outbound deals valued at $1.1 billion, marking the highest figures ever recorded. Concurrently, domestic acquisitions reached a four-year peak of $4.1 billion across 137 transactions, according to data from Venture Intelligence. However, inbound deal values saw a significant decline, plummeting to $863 million from $3.34 billion in the previous year, despite a reduction in the number of deals from 11 to 24.
After a mere four outbound deals in 2021 and 2022, with none in the subsequent years, the volume surged to 26 in 2025, establishing it as the most significant year for outbound mergers and acquisitions (M&As) by Indian startups in both value and volume. Experts attribute this increase in outbound activity to Indian founders’ ambitions for scaling their businesses. Many late-stage startups are now leveraging acquisitions to rapidly enhance overseas revenue and customer bases, a strategy that often outpaces organic growth.
Amithraj A.N., a partner at Aeka Advisors, noted that the surge in outbound acquisitions reflects the maturation of the Indian startup ecosystem. He highlighted that leading companies in sectors such as SaaS, gaming, and deep tech are actively acquiring assets in the US and Europe to expand their global presence and secure niche intellectual property that is not available domestically.
For late-stage startups that have raised capital at peak valuations, relying solely on organic growth is often insufficient. Inorganic growth through acquisitions has become a crucial strategy for boosting revenue. Notable outbound transactions last year included Narayana Hrudayalaya’s acquisition of the UK-based Practice Plus Group Hospitals for $249 million and Lupin’s purchase of the Netherlands-headquartered VISUfarma for $222 million. These acquisitions were primarily aimed at gaining access to technology and global customers, as overseas recoveries from clients tend to be significantly higher than those in the Indian market.
Other significant deals included RateGain’s acquisition of US-based Sojern for approximately $250 million to enhance its position in travel-tech marketing, and Nazara Technologies’ partnership with UK-based Curve Games to penetrate the global console gaming market. Rajat Ranjan, managing director at Kotak Investment Banking’s digital and robotics team, emphasized that healthier valuations and improved balance sheets have empowered domestic startups to pursue international deals, particularly in regions like Southeast Asia.
As the Indian startup landscape continues to evolve, the trend of outbound acquisitions is likely to persist, driven by the need for growth and the pursuit of global opportunities.
**FAQ**
**What factors are driving the increase in outbound acquisitions by Indian startups?**
The increase in outbound acquisitions is primarily driven by the desire for rapid scaling, access to advanced technology, and the pursuit of global customer bases, as many startups seek to enhance their revenue streams beyond the domestic market.
