Sreejita Talukdar, Content Writer, Siliconindia

When we choose to start our career as entrepreneurs, a lot of thoughts and anxieties cover us as we think about the company’s future. Startups are the underdogs of the industry, which have the potential ability to achieve remarkable success with their most innovative ideas which are extremely beneficial to the industry. Generally, startups tend to start their journey with high costs and limited revenue. That is the reason they are often seen to seek the required funding or capital from various sources like venture capitalists, angel investors, and others. Most of the time the newly born companies don’t have a fully developed business model, a well-defined business plan, and marketing strategies, but they have innovative thoughts and ideas that need a little polish to shine bright.

The Game of Merging & Acquisition

Recently, to boost the startup ecosystem, a lot of opportunities have been found to guide young startups like incubation centers, and startup events where they can connect to experts, investors, and other important personalities who provide a clear roadmap to these booming organizations. When startups want to get recognition or inorganic expansion in a very short period, they often opt for merging and acquisition.

The Indian startup ecosystem witnessed a rise in the number of M&A in 2022, approximately 240 deals took place higher than 10 percent in comparison to 2023. With the emergence of startup M&A deals, the world is experiencing a startup wave of M&A.

Merging and acquisition is a specific kind of corporate restructuring, through which few changes in the organizational structures occur to achieve the strategic targets and goals of the organizations. Keeping in mind the global economic slowdown and the resulting funding winter, experts say that merging and acquisition have proved to be the most feasible option for many.

According to Kavit Sutariya, general partner of CapFort Ventures, “The focus has also shifted to profitability and sustainability, and mergers & acquisitions provide a strategic means of business consolidation and expansion. Additionally, with the compression in fundraising, distress mergers & acquisitions may become more frequent”.

Merging and acquisition can also turn profitable for the startups who were growing well in the last couple of years but after that, they came to a standstill position. Shauraya Bhutani, Partner, Breathe Capital says that such startups that have lost track of profitability in the market and ran out of cash, this is a good option for them to bring back their lost pride and profit. Today, even large companies are making smart acquisition moves on their smaller peers through product expansion, talent acquisition, or entry into a new market.

The Founder & CEO of Assiduus Global, Somdutta Singh mentioned that a few merging and acquisition deals take place if the company is planning to expand its footprints in some new geographic location or enter into a new market. By choosing this option the company can grow faster, efficiently, and achieve its objectives.

Merging & Acquisition is the powerful alliance that ignites ingenuity & creates strategic dominance by redefining the game of business