Critical Appreciation of the Merging & Acquisition Deals of 2023-24

India has observed a sharp growth in the startup ecosystem which has resulted in the swelling up of India’s GDP growth. Merging and Acquisition deals are one of the major game changers in the landscape of the startup ecosystem. During FY21, India saw more than 250 merging and acquisitions deals, which dropped down to 204 in 2022, and further fell to 145 in 2023.

The volume of the deals in the country witnessed a sharp fall of 23 percent, while the total disclosed value dropped by 38 percent since 2022. After the completion of the first quarter of 2024, a total of 26 merging and acquisition deals have been recorded so far. The small startup companies are targeting to gain larger market share, by adding revenue streams, and getting access to better technology, while at the same place, big companies are trying to acquire potential startups horizontally to eliminate the competition in the market.

According to the survey report of PwC, 60 percent of the CEOs plan to make at least one acquisition in the next three years, and 70 percent anticipated leveraging M&A for the accelerated adoption of technology and related processes.