Investor confidence rebounds: Consumer & Retail deal value hits $3.4 billion in Q3 2025
Excluding public market activity, M&A and private equity (PE) deals together contributed USD 2.3 billion across 121 deals, a massive 168% quarter-on-quarter surge in deal value.
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India’s consumer and retail sector bounced back strongly in the third quarter of 2025, clocking transactions worth USD 3.4 billion across 132 deals, according to Grant Thornton Bharat’s Consumer and Retail Dealtracker. This marks a 6% rise in deal volumes and a 9% increase in value compared to the same quarter last year, reflecting renewed investor optimism amid festive demand and a shift toward value-driven transactions.
Excluding public market activity, M&A and private equity (PE) deals together contributed USD 2.3 billion across 121 deals, a massive 168% quarter-on-quarter surge in deal value. The report attributes the jump to five high-value deals exceeding USD 100 million and 26 deals above USD 10 million, which together accounted for nearly 89% of total deal value.
“Q3 marked a decisive rebound for India’s consumer and retail sector, with deal volumes rising to 132 and values crossing USD 3.4 billion, nearly four times higher than the previous quarter,” said Naveen Malpani, Partner and Consumer Industry Leader at Grant Thornton Bharat. “Investor focus on textiles, apparel, food processing, and e-commerce reflects the intersection of traditional strengths and digital disruption shaping India’s consumption story,” he added.
M&A Activity Soars 357%
Mergers and acquisitions remained buoyant with 24 deals worth USD 955 million, marking a 357% increase in value from Q2 2025. The jump was largely driven by big-ticket transactions in food processing and apparel. Domestic activity dominated, contributing 79% of volumes and 64% of total value, while five outbound cross-border deals signalled India Inc’s return to international markets.
Strategic acquisitions led the pack, with Reliance Group emerging as the most active buyer with three deals, followed by Tilaknagar Industries, D C Kothari Group, and Le Lavoir, each closing two acquisitions.
Private equity and venture capital investments also held strong momentum, logging 97 deals valued at USD 1.3 billion, a 106% jump in value quarter-on-quarter. The textiles and apparel, e-commerce, and consumer services segments led this surge, propelled by festive demand, premiumisation trends, and growing digital adoption.
Larger mid-market rounds replaced the previous quarter’s small-ticket deals, with Agilitas Sports, P-TAL, Kimirica, and Zepto completing two funding rounds each — a clear indication of stabilising valuations and improved investor sentiment.
The public markets staged a dramatic comeback in Q3 2025, raising over USD 1.1 billion through six IPOs and five Qualified Institutional Placements (QIPs). That’s a 5.5x rise in volume and a major jump in value from just USD 36 million in Q2.
Urban Company and Bluestone Jewellery together accounted for 70% of IPO proceeds, while Tilaknagar Industries and Lenskart drove 91% of total QIP fundraising — underscoring strong investor appetite for high-growth consumer brands.
Sectoral Highlights: Big-Ticket Deals Return
The quarter saw a strong comeback of large, value-driven transactions, especially in traditional consumer segments.
Food Processing, FMCG, and Textiles led M&A, contributing 67% of deal volumes and 94% of value. Notable transactions included Tilaknagar’s USD 488 million acquisition of Pernod Ricard’s Imperial Blue and Titan’s USD 283 million purchase of Damas Jewellery.
Consumer durables and home furnishings also saw portfolio diversification moves, such as Asian Paints’ acquisition of White Teak and Reliance Retail’s Kelvinator buyout.
E-commerce and tech-enabled consumer devices gained traction with festive-led funding in startups like Jumbotail, Zepto, CityMall, FirstClub, Miko, and Indkal Technologies, signalling rising investor confidence in quick commerce, community commerce, and AI-led consumer products.
Cross-border acquisitions returned, led by Titan’s jewellery deal in the UAE and Lenskart’s acquisition in Spain, indicating global ambitions among Indian consumer majors.
The lifestyle and personal care segments attracted sustained attention, with transactions across wellness, childcare, and beauty brands focused on scalability and digital-first growth.
The report highlights that the average deal size jumped to USD 18.8 million, up from USD 7.2 million in Q2 — a clear signal of investors’ shift toward larger, capital-intensive, and strategically driven bets.
“Investor confidence is returning not just in volume but in quality,” the report notes, adding that consumer businesses that combine scale with brand strength and digital agility continue to attract the most capital.
