The retail and consumer sector in India experienced a strong recovery in the third quarter of 2025, with both value and deal volumes showing substantial growth. The overall value of deals in the sector increased to more than $3 billion, nearly four times the value of deals in the previous quarter. The textile, apparel, and accessories sectors, along with continued activity in food processing and e-commerce, were the primary drivers of this recovery, according to the Q3 2025 Consumer and Retail Dealtracker report by Grant Thornton Bharat.
There was also a significant increase in activity during the third quarter of the year, particularly in the private equity and venture capital sectors. The sector has closed 97 deals worth $1.3 billion, more than double the number of deals closed in the previous quarter. The rise in deal volume is linked to seasonal demand, particularly for festive items such as apparel, consumer electronics, and e-commerce products. Brands like VIP Industries, Zepto, Jumbotail, and Miko also secured significant funding rounds, demonstrating the industry's vitality.
Recovery in mergers and acquisitions (M&A) activity also occurred during the third quarter, particularly in outbound transactions, as Indian companies sought to become more globally oriented. There were 24 M&A transactions, totaling $955 million in value. This involved national mergers and foreign takeovers. Some of the key deals included Imperial Blue, a brand of Pernod Ricard, acquiring Tilaknagar, and Titan acquiring Damas Jewelry.
The resurgence of cross-border acquisitions signifies a strategic transition as Indian corporations endeavor to broaden their product portfolios and increase their global market share. During this time, five significant outbound acquisitions took place, highlighting the pattern of Indian firms expanding internationally.
Furthermore, investor confidence in consumption-related sectors in India remains strong, especially during festive seasons and after positive policy measures. In Q3, six initial public offerings (IPOs) and five qualified institutional placements (QIPs) raised a total amount of more than $1.1 billion. Leading brands like Urban Company, Bluestone jewellery, Tilaknagar, and Lenskart spearheaded this investment wave, showcasing the growing market interest in consumer-facing businesses.
Naveen Malpani, head of the consumer industry at Grant Thornton Bharat, has revealed that the festive quarter confirmed the significance of e-commerce as a principal driver of consumption. He emphasized that the online sales during the festival had already exceeded Rs 60,700 crore in the first week, marking a 29% year-over-year growth.