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India’s consumer and retail sector demonstrated renewed momentum in Q3 2025, with strategic capital allocation across textiles, food processing, and e-commerce. Investment flows reflected a shift toward scale-driven transactions and differentiated business models, supported by festive demand and operational efficiencies. The Q3 2025 edition of the Consumer and Retail Dealtracker presents a comprehensive overview of deal activity, highlighting the return of outbound M&A, larger private equity rounds, and selective public market fundraising. The publication outlines how investor confidence translated into targeted plays across premium apparel, omni-channel platforms, and tech-enabled consumer services. It also captures the sector’s response to policy developments and market sentiment, offering timely insights for stakeholders evaluating growth opportunities.
Dealmaking surged sharply, with volumes reaching their second-highest level on record. The only quarter to surpass it was Q1 2025, which saw 140 deals valued at USD 4 billion. Transaction values in Q3 rose nearly fourfold compared to Q2 2025. When measured against Q3 2024, deal volumes increased by 6%, while values improved by 9%.
M&A volumes held steady compared to Q2 2025, while values surged significantly, signaling the return of larger transactions. Activity was led by consolidation in food processing, strategic plays in textiles & apparel, and select deals in retail tech and consumer durables. Domestic deals led both volumes and values, with a 79% and 64% share, respectively.
Private equity flows strengthened, with stable volumes while values doubling quarter-on-quarter. Investors backed textiles & apparel, e-commerce, and consumer services, highlighting confidence in categories linked to festive demand, brand premiumisation, and digital adoption.
Public market fundraising in the sector reflected broader market optimism, with volumes spiralling 5.5x times with 6 IPOs and 5 QIP issues and values witnessing a jump from USD 36 million in Q2 2025 to USD 1.1 billion in Q23 2025. Fundraising reflected improved equity sentiment, with issuers leveraging favourable market conditions to expand capital bases ahead of the festive cycle.
