The mergers and acquisitions (M&A) segment in 2024 reflects an evolution driven by post-pandemic transformations, economic shifts and industry-specific momentum. The pandemic years accelerated digital transformation across crucial sectors and spurred a wave of M&A activity as companies sought to strengthen their digital capabilities. Low interest rates and abundant capital fueled the growth initially but rising inflation and increasing interest rates gradually started to affect valuations and reduce deal volume. Industries such as technology, healthcare and sustainability continue to be strongholds of M&A activity despite the challenges and signals enduring investor confidence in the areas.
Technology and AI startups have emerged as prime targets in the M&A field and especially as businesses seek to stay competitive through innovation. Companies like Replit in the US have attracted substantial funding and recently secured $100 million in a deal that signals rising appetite for AI-driven solutions. Indian companies are following a similar path but at a slower pace.
Another emerging trend in 2024 is the surge in cross-border M&A as companies from the US and India actively pursue global growth. It is evident in Mankind Pharma’s $1.6 billion acquisition of Bharat Serums and demonstrates the allure of India’s healthcare sector for US investors. Bharti Airtel’s substantial $4.08 billion investment in the BT Group reflects India’s ambition to expand its telecommunications influence on a global scale.
The rise of Environmental, Social and Governance (ESG) principles has also shaped M&A strategies this year and especially as companies prioritizes sustainable and socially responsible investments. Firms like Charm Industrial in the US have garnered attention and Tesla’s commitment to battery innovation highlights the sustained focus on eco-friendly technologies. Renewable energy companies in India and particularly in the solar and wind sectors are becoming attractive M&A targets.
Fintech remains a hotbed for M&A and particularly in the US. Robinhood’s acquisition of Pluto and Stripe’s purchase of Lemon Squeezy highlights the drive to expand services and cater to a digitally-native audience. Indian fintech firms are leaning toward organic growth and preparing for IPOs. The sector is projected to reach $150 billion by 2025 with AI-enhanced advisory and UPI-driven credit solutions.