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Technology investors entered 2025 with a clear focus on disciplined capital deployment and long-term value. The Q1 2025 edition of Technology Dealtracker captures how dealmakers responded to global economic signals by concentrating investments in resilient, innovation-driven segments. As interest rates remained steady and policy shifts emerged, especially in cross-border trade, investors reassessed valuations and aligned their strategies accordingly.
India maintained its position as a key destination for technology capital, supported by strong economic fundamentals and regulatory continuity. Private equity activity centred on AI-enabled enterprise solutions, while corporate buyers pursued strategic acquisitions to enhance global capabilities and strengthen digital infrastructure.
This edition outlines the defining trends and thematic pivots that shaped the quarter, offering a clear view into how stakeholders are actively steering technology investments amid changing market dynamics.
The quarter witnessed the highest volumes and values in the last three years, marking significant growth and investor interest. IPO and PE transactions led the overall deal numbers, collectively accounting for a 73% share in volumes and a 93% share in values.
Despite stable volumes, M&A recorded the lowest quarterly values in the last three consecutive quarters due to non-disclosure of deal values and the absence of high-value deals. Domestic consolidation continues to dominate the segment volumes with over 54% share. The USA continued to dominate both outbound and inbound interest in Q1 2025.
The PE space marks the highest quarterly volumes and values in the last 3 years, recording 65 deals worth USD 1 billion. PE witnessed three deals valued at over 100 million and four deals at and over 50 million, totalling USD 820 million in Q1 2025, compared to none in Q4 2024.
Q1 2025 witnessed Hexaware Technologies raising USD 1 billion in January, marking the largest technology services IPO globally in over a decade, significantly contributing to the values. QIP activity remained stable with 1 deal, i.e., Zaggle Prepaid Ocean Services raising worth USD 70 million in the SaaS segment.
