New Delhi, Oct 13 (NationPress) India's financial services industry recorded a total of 61 transactions amounting to $7.8 billion in Q3 2025, representing a remarkable 39% increase in value on a quarterly basis. This surge was propelled by three significant transactions each exceeding a billion dollars, demonstrating robust institutional confidence and vigorous public market activity, according to a recent report.

The fintech sector emerged as a key player, drawing significant private equity interest in areas such as artificial intelligence, digital payments, and automation. This underscores the sector’s ability to thrive even amidst global economic uncertainties, as highlighted in the report by Grant Thornton Bharat.

This quarter marked the highest deal value since Q1 2024, the report indicated.

“Q3 showcases the contrasting trends in India and global markets. While overall deal volumes have decreased, there is notable activity in long-term strategic investments, an increase in qualified institutional placements (QIP) and initial public offerings (IPO), along with innovations in fintech, underscoring persistent investor confidence,” stated Vishal Agarwal, Partner, Private Equity Group and Deals Tax Advisory Leader at Grant Thornton Bharat.

Domestic reforms, including GST rationalization, may enhance consumption, while re-evaluating acquisition financing by financial institutions and supportive measures for fintech will be crucial for the sector's growth trajectory, Agarwal added.

Additionally, Q3 2025 recorded 17 mergers and acquisitions (M&A) deals valued at $1.5 billion, reflecting a modest 6% increase in deal volumes, the report noted.

M&A deal values, however, portrayed a more cautious atmosphere characterized by smaller average deal sizes. Domestic transactions dominated in volume, accounting for 76% of deals, while inbound investments primarily drove overall value, indicating ongoing cross-border interest despite a quieter period for large-scale M&A.

Early-stage, Series A and B investments were prevalent in the private equity (PE) funding sphere, primarily aimed at geographic expansion. The sector's deal value reached $2 billion across 16 M&A and PE deals, constituting 77% of the total value. High-value transactions significantly influenced the quarter, with one billion-dollar deal and four deals exceeding $100 million contributing to 91% of sector value.

Furthermore, the quarter experienced a robust recovery in public market activities, with two billion-dollar deals (QIP and IPO) together accounting for 57% of the total sector value, compensating for declines in private transactions, according to the report.