IIMA Ventures, Jaivel launch fund to invest in defence deeptech

Hello,

This week, Equirus Group merged with Sapient Finserv creating a Rs35,000 crore AUM wealth management platform, a large consolidation in wealthtech that reshapes distribution and deal activity.

Meanwhile, LG Electronics’ India IPO attracted $50bn in bids, setting a near two-decade record.

And finally, Quadria Capital planned to invest up to $800m from its third fund in Indian healthcare, which could help accelerate existing healthcare M&A, PE exits and capacity expansion.

I hope you enjoy this week’s roundup — please connect on LinkedIn to discuss your next M&A deal.

Let’s dive in.

Deal Tracker

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Market Trends

The post-tariffs calculus

There is much being said about India’s economic resilience. Let us examine the proof of this pudding. 

FDI inflows to India stood at $81.04 billion this May. Not bad as real capital and M&A finance go. 

M&A in the same period showed overall deal value at $50.5 billion, with fewer but larger transactions dominating, a consolidation of deal value in fewer hands. A notable example: the Porteast–Shapoorji $3.1 billion deal. 

Similarly, private credit surged to $9 billion in H125, up 53% YoY, driven by very large transactions, including large financings in infrastructure, real estate, renewables, and manufacturing. These point to the instruments’ growing capacity to support refinancings and acquisitions. 

Experts insist that sectors such as electronics, consumables, semiconductors, and renewables are likely to see a rise in M&A volume, driven by demand, fresh capital deployment and policy impetus. Similarly, valuations in standout companies may rise under competitive bidding for high-quality assets; coupled with tighter scrutiny of inbound capital from geopolitically sensitive sources.

But here is what the Q3 numbers from GT Bharat said this October:

Macro vs. micro

Globally as well as in India, trade protectionism and greater investment screening are creating economic headwinds, while subsidies to reshape supply chains are acting as the tailwinds. 

In June, the RBI governor noted that FX reserves, sufficient to cover 11 months of goods imports, were stable. But we know foreign currency value fluctuates weekly. 

And this month the central bank flagged potential downside risks to GDP growth in late FY26. 

Yet India’s apex bankers managed to miss the government’s given target of a 4% inflation, which is now down to about 3%. While prices have softened on the back of easing food and fuel costs, this moderation leaves limited room for aggressive monetary loosening.

Lender-friendly finance 

A new framework will allow Indian banks to fund domestic corporate acquisitions, relaxing limits on lending against listed debt and equity (more on this in the next edition of Teaser).

As part of a broader package of 22 measures to deepen bank lending and capital markets, this move could lower the cost of funds for acquisition finance. 

Yet private capitalists remain largely unfazed, citing their complex, bespoke, higher-risk structures and execution speed as enduring advantages over local banks. Indian lenders, some argue, will serve more as a backstop than a competitor for domestic acquirers. 

This is how the markets reacted:

An alternate asset manager said his business will benefit from deeper domestic capacity. But Mint urged prudence on asset-liability mismatches (ALM), growing leverage risk, and spread compression of private credit yields and the economics of sponsor deals.

Give or take 

We should also consider the impact of US tariffs. Corporates are being forced to re-route supply chains and exporters are pivoting to different markets, while policymakers have promised bailouts for key industries. The medium-term picture looks promising, but this realignment could delay deals and affect near-term valuations.

India’s cunning recalibration of relations with China have positioned it uniquely as both a beneficiary and participant in this new order. This is how: Multinationals diversifying to hedge against China are re-routing to India as the country welcomes ‘friendly’ capital, and its financial watchdogs and interest groups face new tests of openness and discipline. 

Authorities will also allow joint ventures (JV) with Chinese firms as deals evolve toward Indian ownership and tech transfers. Supply-chain diversification is likely to proliferate inbound factory and asset acquisitions in electronics, semiconductors, and the EV ecosystem, such as the upcoming Dixon–Longcheer and  HCL–Foxconn announcements.

A war chest 

Finally, the PE ecosystem remains flush with dry powder. VCcircle said LPs committed $86 bn to India’s PE/VC funds in Q1 of 2025. This can be interpreted as the optimistic light in which India is viewed as an investment destination, though capital deployment has been cautious amid shifting valuations. 

Funds are also increasingly focussing on control deals, secondary transactions, and buy-and-build strategies across healthcare, financial services, and consumer tech. 

Easy exits

What does all this say about the resilience of India’s economy and M&A market? 

We can see that new realistic and diverse pathways are emerging with a thriving intra-fund secondaries scene – as seen in developed market economies – and blockbuster IPOs such as Urban Company driving liquidity events. 

India remains a singularly volatile market, but its deepening domestic capital markets and sponsor financing may yet anchor a stable exit environment. Watch this space.