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Buy Side M&A - TMT | Transacta: Strategic Acquisitions and Advisory

Indian Startups Powering IT Giants Growth Amid Funding Crunch Amid a funding crunch in the startup ecosystem, tech giants are capitalizing on the moment to acquire innovative Indian startups. These smaller firms, specializing in fields like AI, semiconductor technology, data analytics, and spacetech, bring the agility and disruptive solutions that larger companies often need to stay competitive. Why is this happening? With global tech spending still in a cautious phase, especially in discretionary areas, IT firms are strategically investing in startups to fortify their capabilities and future-proof their offerings. By acquiring niche talents and breakthrough technologies, they can quickly address gaps in their portfolios and pivot toward high-value segments like design and AI without the time and resource investment needed to build these solutions in-house. This approach, dubbed “Solutions to Valuations,” highlights the significant return on investment these acquisitions can bring. For example, a relatively small investment in a startup can yield new revenue streams, as IT firms leverage these innovative solutions across their larger client bases. This synergy not only boosts revenue but can also elevate valuations, making these acquisitions a powerful growth strategy. The benefits are mutual: startups gain crucial resources and exposure to extensive markets, while tech firms enhance their offerings and competitive edge. In times of tighter funding, these partnerships are reshaping the tech landscape, fueling growth and ensuring that innovative talent continues to thrive.

Akash Adlak

Vice President-Infinity Assurance || MBA IIM Lucknow||

3w

In the midst of a funding crunch, tech giants are smartly acquiring innovative Indian startups to stay ahead. These nimble companies bring specialized skills in areas like AI, semiconductor tech, and spacetech, allowing larger firms to quickly plug gaps and scale up in high-value areas. The result is a win-win: startups get crucial resources and exposure, while IT giants strengthen their portfolios, fueling growth and boosting valuations. It’s a savvy strategy that’s helping both sides thrive, even in uncertain times.

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Mohit Sharma

Founder | Head of Marketing @ EduBeacon | Corporate Trainer | Sales Expert

3w

Startups are playing a crucial role in powering the growth of IT giants, especially in the current funding crunch scenario. However, I would like to add that this trend is not just limited to the Indian startup ecosystem but is a global phenomenon. IT firms worldwide are recognizing the potential of startups in bringing innovative solutions and disruptive technologies to the table.

Gayatri D.

UI/UX Designer | Product Designer | Figma & Adobe XD Expert | Freelance Innovator

3w

indian startups are playing a key role in powering the growth of tech giants, especially amidst the ongoing funding crunch. 🚀 With tech firms acquiring innovative startups in fields like AI, data analytics, and spacetech, they’re not just filling gaps—they’re future-proofing their businesses. The strategy? Invest in niche talent and breakthrough technologies to stay competitive without reinventing the wheel. This ‘Solutions to Valuations’ approach is a win-win: startups gain exposure and resources, while IT giants gain disruptive solutions to fuel growth. It’s a powerful example of how collaboration in tough times can reshape the tech landscape. 

Startups gain essential resources and broader market access, while IT firms enhance their offerings and unlock new revenue streams. This symbiotic relationship is reshaping the tech landscape and paving the way for unprecedented opportunities. As the tech world evolves, so do the possibilities—it’s a golden era for innovation, growth, and collaboration in the coming years! 🚀

Rahul Rana

Helping Small Sized Teams in Enterprises make RRATIONAL decisions in Marketing. Branding Consultant | Website Developer

3w

Reliance Jio Unlocking the 4G Landscape back in 2016 was truly the game changer. Young Indians are hungry, productive, tech-savvy, and are here to conquer the world through their work.

Rushikesh Vakte

MBA-SIBM Bengaluru'26 | Certified NISM- XV, VIII | Equity Research | Investment Banking | Equity Derivatives | Corporate Finance | 100K+ Impressions

1mo

Insightful!

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