Indian Startups Embrace Overseas Acquisitions to Fuel Growth
Indian startups are actively shifting their strategies from building businesses organically to buying companies abroad. They seek rapid scale, revenue diversification, and stronger market positions. This move comes as these firms aim to justify valuations secured in private and public markets.
Record-Breaking Outbound Deal Activity in 2025
Data from Venture Intelligence reveals a dramatic surge in outbound mergers and acquisitions by Indian startups. In 2025, companies completed 26 outbound deals worth $1.1 billion. This represents the highest volume and value on record.
The contrast with previous years is stark. Between 2021 and 2022, there were only four outbound deals. None followed in the immediate years after. The jump to 26 deals in 2025 signals a major strategic pivot.
Domestic acquisition activity also remained strong. It reached a four-year high of $4.1 billion across 137 transactions in the same year. However, inbound deal value saw a sharp decline. It fell to $863 million across 24 deals, down from $3.34 billion across 11 deals a year earlier.
Drivers Behind the Acquisition Spree
Industry experts point to several key factors fueling this trend. Late-stage startups are now using acquisitions to add overseas revenue and customers much faster than organic growth allows.
"The record jump in outbound acquisitions is largely a sign of the Indian startup ecosystem maturing," said Amithraj A.N., partner at Aeka Advisors. "We are seeing 'category leaders' in India aggressively acquiring assets in the US and Europe to establish a global footprint or acquire niche intellectual property."
For startups that raised capital at peak valuations, organic growth alone often falls short. Inorganic growth through acquisitions becomes the fastest lever to boost revenue.
Notable Deals and Strategic Goals
Several high-value transactions highlight this strategy. Narayana Hrudayalaya bought UK-based Practice Plus Group Hospitals for $249 million. Lupin acquired Netherlands-headquartered VISUfarma for $222 million.
Other examples include RateGain's acquisition of US-based Sojern for about $250 million to strengthen its travel-tech marketing. Nazara Technologies' deal with UK-based Curve Games aimed to enter the global console gaming market.
These moves are often about gaining technology, intellectual property, or access to global customers. Overseas recoveries from clients typically far exceed those in Indian markets, making such acquisitions financially attractive.
IPO-Bound and Listed Companies Lead the Charge
Investment bankers note that outbound acquisitions are increasingly driven by firms preparing for public listings or those already listed. Scale and diversification come under greater scrutiny in public markets.
"Listed companies, given their valuations and balance sheet strength, can play around a bit," said Abhishek, technology, media, and telecom practice leader for deals at PwC. He added that deal activity in 2026 is likely to surpass 2025 levels across both listed and unlisted companies.
Consolidation is happening across sectors, with momentum shifting toward listed targets. They accounted for about 32% of deal value in 2025, up from 23% in 2024.
Sector Hotspots and Future Outlook
Advisers identify several sectors with strong outbound interest:
- Deeptech and Semiconductors: Driven by global interest in Indian chip design and AI capabilities.
- Fintech: Opportunities in technology and lending infrastructure.
- Gaming and Media: Regulatory tightening in India, including bans on real-money gaming, pushes companies to seek new IP and user bases overseas.
- Direct-to-Consumer (D2C): Established players use acquisitions to unlock scale beyond organic growth.
Other active sub-sectors include software-as-a-service, enterprise technology, fintech, consumer technology, and logistics. The debate has firmly shifted from build to buy, with acquisitions becoming central to growth strategies as IPO markets remain active.
As Rajat Ranjan, managing director at Kotak Investment Banking, stated, "We are at the cusp of an evolution of the internet economy." Healthier valuations and improving balance sheets now enable domestic startups to pursue these ambitious overseas deals strategically.
