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Strategic activity in India’s financial services sector continues to reflect a measured approach, balancing long-term value creation with near-term caution. The Q3 2025 edition of the Financial Services Dealtracker presents a comprehensive view of dealmaking trends across M&A, private equity, IPOs, and QIPs.
It highlights how investor sentiment, regulatory signals, and macroeconomic indicators are influencing capital deployment across banking, NBFCs, fintech, insurance, and asset management. This edition captures the momentum in fintech-led innovation, the recalibration of private equity strategies, and the selective resurgence of public market transactions. It also outlines how deal activity is being shaped by domestic policy shifts and global developments, offering a timely perspective for stakeholders evaluating strategic opportunities in the sector.
Q3 2025 recorded 61 deals, a 23% quarter-on-quarter decline, even as total values rose 39% to USD 7.8 billion. This was driven by three billion-dollar transactions, across M&A, IPO, and QIP, which together contributed USD 5.4 billion or 69% of total quarterly values. This marks the highest quarterly value recorded since Q1 2024.
Q3 2025 recorded a slight 6% increase in deal volumes recording 17 deals, while deal values dropped sharply by 44% over the previous quarter at USD 1.5 billion, largely due to the absence of large-ticket transactions. Q3 2025 also witnessed a downtrend over the same period last year.
Private equity market in the sector contracted significantly, with volumes down 33% and values declining 37% from the previous quarter with 38 deals valued at USD 1.2 billion. Early-stage investments, particularly Series A and B rounds, dominated the funding landscape, with most capital raised to support geographic expansion.
IPO activity rallied strongly after a muted Q2, while QIP volumes halved despite values rising nearly 2.8x. The IPO market was led by HDB Financial Services’ USD 1.5 billion offering, while QIP activity was dominated by State Bank of India’s USD 2.9 billion issuance—the largest QIP placement on record across all sectors.
