According to the Grant Thornton Bharat Dealtracker, November 2024 saw a decline in deal activity, with 163 transactions totaling USD 10.8 billion, representing an 8% drop in value and 21% decrease in volume compared to October 2024. Excluding IPOs and QIPs, the month witnessed 145 deals worth USD 3.8 billion, marking a 22% and 25% decline in volume and value, respectively. Despite this slowdown, the quick commerce space remained a bright spot, with notable fundraises by Zepto, Swiggy, and Zomato. As the year draws to a close, deal activity is expected to remain subdued to moderate, with several transactions likely to be pushed to Q1 2025.
Shanthi Vijetha, partner, Growth at Grant Thornton Bharat, commented on the deal activity, “Quick commerce fund raising activity headlined in November, which otherwise witnessed a subdued domestic M&A deal activity and lowest monthly PE deal volumes in 2024 as deals have been delayed/ postponed to 2025. There is a recent uptick in deal activity in the market, but expected to be announced in Q1 2025. Hence, anticipate moderate deal activity in December too, but a good start for the new year 2025 in January.”
Mergers and acquisitions (M&A) landscape: India’s M&A landscape in November saw a decline in deal activity, with 58 deals totaling USD 1.8 billion, representing a 28% drop in volume and 48% decline in value compared to October, which recorded 80 deals worth USD 3.5 billion. The slowdown was primarily due to subdued domestic activity and the absence of big-ticket transactions. However, the infrastructure sector stood out, accounting for 31% of total M&A values, driven by Adani’s acquisition of ITD Cementation India Limited (USD 381 million) and Ashoka Buildcon’s acquisition of Ashoka Concessions (USD 182 million). While, domestic deals continued to lead the deal activity, accounting for a 69% of volumes and a 57% of values, cross border M&A was dominated by interest from U.S companies contributing to 11 deals accounting for 61% of the volumes.
Private Equity (PE) landscape: PE activity in November 2024 saw 87 deals totaling USD 1.9 billion, with volumes declining 17% from October, but values rising 30% to USD 1.9 billion, driven by five high-value deals exceeding USD 100 million. The top five deals, spanning retail, agriculture, energy, pharmaceuticals, and banking, accounted for 67% of total PE values, totaling USD 1.3 billion. Notably, Motilal Oswal Private Wealth, family offices, and angel investors invested USD 350 million in KiranaKart Technologies (Zepto), its third fundraise in 2024 and marking the top deal for November. Retail and consumer sectors led the deal activity, followed by agriculture, banking, and energy sectors, underscoring a growing focus on sectors like renewable energy, agritech, and quick commerce, driven by both local and global investors.
IPO & QIP Landscape: November witnessed a robust IPO and QIP activity, with 8 IPOs raising a total of USD 4.2 billion and 10 QIPs garnering USD 2.8 billion. Notably, Swiggy’s highly anticipated IPO secured USD 1.3 billion through its public issue, complemented by an additional USD 605 million raised via the QIP route. Zomato successfully raised USD 1 billion through QIPs, demonstrating investor confidence in India’s growing digital ecosystem. This surge in IPO and QIP activity showcases resilience of India’s capital markets and the attractiveness of its growth-oriented companies.
Sectoral Trends:
Retail and Consumer Sector: The retail and consumer sector led deal activity, accounting for 17% of volumes and 22% of values, driven by three high-value deals in FMCG and e-commerce segments totaling USD 670 million. Zepto’s USD 350 million fundraising pushed its total funding to over USD 1.35 billion.
Infrastructure Management Sector: Infrastructure management contributed to the second-highest deal values, with Adani group deals totaling USD 463 million. Renew Exim DMC’s USD 381 million acquisition of ITD Cementation India was the top deal.
Banking and Financial Services Sector: The sector saw a 60% increase in volumes and 4.3x increase in values over october, with 16 deals worth USD 399 million. Finova Capital’s USD 135 million fundraising drove growth.
Agriculture and Forestry Sector: Deal values surged 10.9x, with Alpha Wave Fund’s USD 350 million investment in Advanta Enterprises Ltd. This investment will accelerate Advanta’s growth and expansion.
IT and IT-ES Sector: Deal values surged 3.7x, driven by L&T’s two high-value acquisitions, totaling USD 278 million. These acquisitions will enhance L&T’s AI and software capabilities.
Energy and Renewables Sector: Deal values increased 46%, driven by India Grid Trust’s USD 300 million fundraising for its “Energrid” platform. Cleantech and power generation segments contributed equally to deal volumes.
