New Delhi, October 12 (Daily Kiran) : In New Delhi, the Indian financial services sector reported a remarkable increase in deal value, reaching $7.3 billion in the third quarter of 2026, according to a report released on October 12. This figure represents a 129% rise compared to the previous quarter, with the number of transactions slightly increasing from 65 to 67.
The surge in deal value is attributed primarily to high-value mergers and acquisitions (M&A) and public market fundraising activities, which included two significant initial public offerings (IPOs). Excluding IPOs and Qualified Institutional Placements (QIPs), there were 58 deals valued at $3 billion in M&A and private equity/venture capital (PE/VC) activities.
M&A deal value rose by 54% from the previous quarter. Meanwhile, public market fundraising showed strong performance, although PE/VC investments saw both a decline in the number of deals and their total value. Notably, fintech, banking, and non-banking financial companies (NBFCs) contributed nearly 67% of the total number of deals, reflecting sustained investor confidence in technology-driven financial platforms and lending businesses.
Vivek Ayyar, Partner in Financial Services Risk Advisory at Grant Thornton India and NBFC Industry Leader, stated that as capital investments become more selective, the ability to convert growth into sustainable returns will determine which financial firms attract investment. He emphasized that in a high-cost environment, having a robust funding model, strong unit economics, and the capacity to address regulatory challenges will be as crucial as opportunities for business expansion.
Ayyar added that there is still significant potential for growth in India’s financial ecosystem. However, future benefits will likely favor businesses that can advance not just rapidly but also sustainably.
In Q3 2026, there were 23 M&A deals totaling $2.3 billion. Although the number of deals decreased by 4% compared to the previous quarter, the total value saw a significant increase due to one large transaction. Domestic deals accounted for 78% of the total number, yet contributed only 9% to the overall deal value. In contrast, three cross-border deals contributed nearly 90% of the total M&A value.
Activities involving Indian companies abroad also slowed, with only two deals recorded in Q3, down from seven in the previous quarter.
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