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The financial services sector in India demonstrated sustained momentum in Q2 2025, marked by strategic activity across banking, NBFC, fintech, and asset management. Investor interest remained concentrated in credit-oriented institutions and scalable platforms, with notable participation from both domestic and international stakeholders. The quarter reflected a mix of small-ticket transactions and select high-value investments, indicating a balanced approach to growth and consolidation.
Our Financial Services Dealtracker Q2 2025 edition provides insights into deal volumes, investment trends, and sectoral movements that shaped the quarter’s performance. It outlines the directional shifts in private equity and M&A activity, highlighting areas of emerging depth and investor confidence.
Q2 2025 witnessed a growth in the overall deal activity over the previous quarter in terms of both volumes and values with 79 deals valuing USD 5.6 billion, a 18% and 5%, increase respectively. The sector contributed a 14% and 33% share in terms of volumes and values, respectively, in the overall quarter’s numbers.
Q2 2025 witnessed an overall decline in numbers over Q1 2025 with 16 deals valuing USD 2.6 billion. Domestic deals continued to lead in terms of volumes even after a 35% decline over the previous quarter. The values were driven by the inbound consolidations for the first time since Q2 2024, contributing an 88% share in the overall M&A values on the back of one billion-dollar transaction worth USD 1.57 billion.
PE activity in this quarter witnessed a 54% and a 89% increase in both volumes and values, with 57 deals valuing USD 1.9 billion, respectively, over Q1 2025 on the back of three high value deals (>USD 100 million) in this quarter together valuing USD 1.2 billion over just one such deal in the previous quarter valuing USD 504 million. The quarter was dominated by the banking and NBFC and fintech sub-sectors, accounting for 94% of the PE deal values.
IPO activity remained muted for the first half of 2025. A similar trend was witnessed in 2023. On the other hand, QIP activity, which recorded the second-lowest quarterly volumes and values in Q1 2025 since Q2 2023 saw an increase in both volumes and values with 6 deals worth USD 1.1 billion in Q2 2025.
This edition presents a structured perspective on deal activity, highlighting directional shifts across investment themes and transaction formats. It captures the interplay between regulatory developments, capital flows, and strategic priorities, offering a comprehensive view of how financial services continue to contribute to India’s economic trajectory.
