Indian Startup Ecosystem’s Rollercoaster Ride in 2024: Top Acquisitions

The year 2024 has been eventful for the Indian startup ecosystem, marked by a significant decline in M&A deals during the first half and a resurgence of notable acquisitions in the second half. The first half faced challenges like funding winters, while the latter half showed recovery fueled by entrepreneurial activity, regulatory reforms, and sectoral growth in technology and infrastructure.

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Key Trends in Mergers and Acquisitions (M&A)

• Decline in H1 2024: A 45% YoY drop in deals, from 67 in H1 2023 to 37 in H1 2024.
• Sequential Decline: A 34% fall compared to 56 deals in H2 2023.
• H2 2024 Recovery: Major acquisitions, including IPO-bound startups and corporate giants, brought momentum back to the ecosystem.

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Notable Acquisitions in 2024

1. Aurionpro Solutions Acquires Arya.ai

• Deal Value: INR 137.7 Cr
• Details: Aurionpro acquired a 67% stake in Arya.ai to bolster its enterprise AI platform tailored for financial institutions.
• Impact: Enhanced Aurionpro’s AI offerings for banking and insurance.

2. BrowserStack Acquires Bird Eats Bug

• Deal Value: $20 Mn (Approx. INR 169 Cr)
• Details: BrowserStack added Bird Eats Bug’s debugging tech to its SaaS offerings, enhancing its bug reporting processes.

3. Freshworks Acquires Device42

• Deal Value: $230 Mn (Approx. INR 1,919.7 Cr)
• Details: Freshworks incorporated Device42’s IT asset management platform, boosting its IT service management capabilities.

4. Fullerton Financial Acquires Lendingkart Stake

• Deal Value: INR 252 Cr
• Details: Fullerton became a majority stakeholder, aiming to expand Lendingkart’s technological stack for MSMEs.

5. L&T Acquires SiliConch Systems

• Deal Value: INR 183 Cr
• Details: Strengthened L&T’s semiconductor division with SiliConch’s chip design expertise.

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Gaming and Entertainment Sector Acquisitions

6. Nazara Technologies Acquires Fusebox

• Deal Value: ￡21.18 Mn (Approx. INR 234.55 Cr)
• Details: Nazara expanded into IP-based gaming with Fusebox’s interactive story games.

7. Nazara Buys Paper Boat Apps

• Deal Value: INR 300 Cr
• Details: Complete ownership of Paper Boat Apps to boost gamified learning with 'Kiddopia.'

8. OneVerse Acquires Spartan Poker

• Details: Entry into real-money gaming by acquiring Spartan Poker and other platforms under its $120 Mn M&A strategy.

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Hospitality and Real Estate Expansion

9. OYO Acquires Checkmyguest

• Deal Value: INR 230 Cr
• Details: Enhanced presence in Paris with Checkmyguest’s vacation rental properties.

10. OYO Buys G6 Hospitality

• Deal Value: $525 Mn (Approx. INR 4,382.72 Cr)
• Details: Acquisition of Motel 6 and Studio 6 brands to strengthen its US and Europe footprint.

Other Significant Acquisitions

11. STG Acquires Eka Software Solutions

• Details: Integrated into STG’s Quor Group to navigate commodity market complexities.

12. Veranda Acquires Tapasya Educational Institutions

• Deal Value: INR 362 Cr
• Details: Strengthened its presence in commerce higher education with Tapasya’s college network.

13. Zomato Acquires Paytm’s Entertainment Business

• Deal Value: INR 2,048 Cr
• Details: Diversified services into entertainment ticketing through strategic acquisition.

14. Times Internet Sells ET Money to 360 One WAM

• Deal Value: INR 366 Cr
• Details: Reinforced 360 One’s wealth management portfolio with ET Money’s digital platform.

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2024 demonstrated resilience in the Indian startup ecosystem. Despite the hurdles in H1, the strategic acquisitions in H2 signaled recovery and growth across sectors, setting the stage for a promising 2025.

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