India's Tech Sector Blooms With 190 M&A Within The Last 4 Years

BANGALORE: The technology sector in India is rapidly climbing the ladder as over 190 mergers and acquisitions (M&A) have taken place within the last four years. Since January, the overall deal in the sector is estimated at $2.27 billion while the trend continues to unfold, sealing all the tech gaps and talent supplies of the country, reports Business Insider.

According to a PTI report, the highest figure of deals sealed were in 2014. In addition the value of startups that is more than $1billion will continue to strengthen itself in acquiring areas which include ad tech, data science, mobile, marketplaces, merchant acquisitions, payments and logistics. The account on tech space was one among the leading trends released from the 'Think Next Roundtable Report' by IT think-tank iSPIRT along with Signal Hill and Microsoft Ventures.
"The average deal size stands at $11.3 million, lower than that of mature start-up ecosystems such as Israel which is at $113 million and the U.S., which is at $57 million," the report stated.
"Volumes and value will continue to rise rapidly. In business-to-business (B2B) software, cross-border M&A will continue to dominate transaction volumes and values. Whereas, in ecommerce and consumer Internet, domestic M&A transactions will prevail," it declared.

Furthermore, the overall account by the volumes in M&A activity shows the domestic transactions is at 72pct.  For the most part, the "Inbound" M&A transactions in B2B software is at 53 pct while the domestic M&A transactions in consumer Internet and e-commerce is held at 60pct.
"Investments in the eCommerce and consumer Internet space have grown 38 times between 2010 and 2014 with deals worth $4.2 billion struck in 2014 alone." the report disclosed. Out of which Flipkart and Snapdeal maintained a 50pct of the overall deal value last year.

To avoid being overlooked, private equity funds and hedge funds will be spending in 'new' Series B ($10-25 million) and Series C & D ($20-250 million) from now on, the report affirmed.

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