a report by Grant Thornton revealed that India's consumer retail sector recorded transactions amounting to USD 3.1 billion in the third quarter of 2024.

New Delhi, October 18, 2024: According to a recent report by Grant Thornton, India's consumer retail sector is set for ongoing growth, having recorded 123 deals valued at USD 3.1 billion in the third quarter of 2024. This growth is fueled by the rapid expansion of quick commerce and direct-to-consumer brands.

Since the third quarter of 2023, the consumer and retail sector has led overall deal activity, representing 20 percent of the total volumes in Q3. This quarter also marked the highest level of activity in the past two years.

Mergers and acquisitions (M&A) reached their highest quarterly deal volumes since the first quarter of 2022, with values increasing by 26 percent compared to the previous quarter. However, the report noted a 9 percent decline in M&A and Private Equity (PE) deal values from Q2 2024, mainly due to undisclosed M&A deal values and small-ticket PE transactions.

Small-ticket transactions dominated the PE space, affecting overall deal values. The M&A sector saw 31 deals valued at USD 629 million during the third quarter. This represents a 36 percent increase from USD 462 million in the second quarter of 2024. Domestic M&A activities accounted for 90 percent of the volume and 97 percent of the value.

Cross-border activity remained steady in volume but experienced a 94 percent decline in value. The largest M&A deal during the quarter was Zomato Media Pvt Ltd's acquisition of Paytm - Wasteland Entertainment Pvt Ltd and Orbgen Technologies Pvt Ltd for USD 247 million.

Naveen Malpani, Partner at Grant Thornton Bharat, commented on the findings: "India's consumer and retail sector is poised for continued growth, driven by the rapid expansion of quick commerce and direct-to-consumer brands. In the last quarter, the sector accounted for 20 percent of total volumes, leading deal activity since Q3 2023. As we approach the festive season, we anticipate a significant surge in sales, reinforcing investor confidence and solidifying the sector's potential for innovation and scalability."

The report also indicated that PE activities recorded the second-highest quarterly deal volumes in the last two years and the second-highest quarterly values for the year. Small-ticket deals (under USD 10 million) represented 70 percent of PE volumes, contributing only 11 percent to the overall values.

This quarter saw seven initial public offerings (IPOs), four of which were valued above USD 100 million each. Brainbess Solutions emerged as the largest IPO in the sector since Q2 2022, raising USD 505 million. Additionally, Quality Improvement Programme (QIP) activity increased from one deal worth USD 72 million in Q2 2024 to four deals worth USD 173 million in this quarter.