Mumbai: Grant Thornton Bharat Q2 2025 Dealtracker Consumer and Retail presents a mixed outlook for India’s deal ecosystem.
While deal activity rose 26% year-on-year with 120 transactions, the total disclosed value slumped to USD 884 million – its lowest since Q4 2022.
The significant drop in average deal size from USD 27.2 million to USD 7.2 million was largely attributed to the absence of mega-deals and muted participation from public markets.
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The quarter reflects a decisive shift toward small-ticket investments and mid-sized strategic acquisitions.
M&A Activity Slows, But Wellness and Apparel Deals Stand Out
According to the Grant Thornton Bharat Q2 2025 dealtracker, Mergers and acquisitions (M&A) accounted for 24 deals valued at USD 209 million. Although volumes remained stable, values plummeted by 90% from the previous quarter.
The market witnessed a series of mid-market strategic tuck-ins across FMCG, health foods, and value fashion. The top deal was ITC’s acquisition of Sresta Natural Bioproducts (24 Mantra) for USD 54 million, emphasizing the ongoing focus on wellness-led consumption.
Jewellery and consumer electronics saw selective consolidation, while outbound M&A deals declined for the third straight quarter amid global uncertainty.
PE Activity Dominated by Capital-Efficient Models
Private equity activity also tapered, with 94 deals valued at USD 640 million. This represents a 17% decline in volume and a 60% drop in value compared to Q1 2025.
Investors showed strong preference for capital-efficient, regionally relevant brands in segments such as value fashion, clean-label FMCG, and retail tech.
Citykart’s USD 68 million fundraise led by TPG and A91 Partners emerged as the largest PE deal of the quarter. Other notable transactions included GIVA Jewellery and Farmley, pointing to continued investor interest in scalable D2C brands.
Grant Thornton Bharat Q2 2025 Dealtracker: Public Markets Stay Quiet
Only one IPO and one Qualified Institutional Placement (QIP) were recorded, jointly raising USD 35 million. This marks a sharp decline from the USD 219 million raised in Q1 2025 and indicates a cautious investor stance in public capital markets, reveals the Grant Thornton Bharat Q2 2025 Dealtracker report.
Sector Spotlight: Textiles and FMCG Drive Momentum
Textiles and FMCG dominated deal activity, accounting for 55 transactions and over USD 509 million in value. There is growing investor alignment toward sustainable, vertically integrated models across spinning, weaving, and fabric processing.
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Incentives like the PLI scheme and PM-MITRA parks are further fueling interest in India’s textile sector.
Clean-label FMCG products also continued gaining traction, driven by consumer preference for health-conscious, minimally processed, and digitally accessible offerings.
Grant Thornton Bharat Q2 2025 Dealtracker
Grant Thornton Bharat is India’s pre-eminent consulting firm, offering a full suite of advisory services across assurance, ESG, M&A, tax, and digital transformation. The firm plays a critical role in shaping vibrant Bharat through its sectoral insights and deal intelligence.
