Grant Thornton Bharat Financial Services Deal tracker
FinTech BizNews Service
Mumbai, July 14, 2026: India's BFSI sector recorded 65 deals worth USD 3.2 billion in Q2 2026, with overall deal values increasing 58% quarter-on-quarter while deal volumes remained largely stable, according to Grant Thornton Bharat's latest Financial Services Dealtracker.
The increase in value was primarily driven by a single large-ticket transaction, with the sector accounting for 11% of overall deal volumes and 8% of total deal values during the quarter. Excluding public market activity, the sector recorded 62 M&A and PE/VC transactions worth USD 2.8 billion, reflecting a value-led recovery driven by strategic M&A transactions despite continued macroeconomic and geopolitical uncertainties.
Commenting on the findings, Vivek Iyer, Partner, Financial Services Risk and NBFC Industry Leader, Grant Thornton Bharat, said, "The BFSI sector witnessed a measured recovery in Q2 2026, led by a few strategic transactions despite a cautious investment environment. Investors continued to prioritise scalable, platform-led and regulated businesses, while capital deployment remained selective. As macroeconomic conditions stabilise and capital markets deepen, India's financial services ecosystem remains well positioned to attract sustained strategic and financial investments over the long term.
" M&A activity rebounded strongly during the quarter, recording 24 deals worth USD 1.5 billion, with deal volumes rising 50% and values increasing nearly fivefold over the previous quarter. The recovery was driven by a few large transactions, led by Meta Platforms' USD 900 million investment in CRED and Prudential plc's USD 368 million acquisition of Bharti AXA Life Insurance, which together contributed the majority of disclosed M&A value during the quarter.
PE/VC activity moderated in Q2 2026, with 38 deals worth USD 1.3 billion, reflecting continued investor caution despite remaining the largest contributor to deal volumes in the BFSI sector. Investment activity was skewed towards smaller transactions, although investor interest in scalable financial platforms remained strong. The quarter's largest PE deal was Grasim Industries, Suryaja Investment and International Finance Corporation's USD 419 million investment in Aditya Birla Capital Ltd, while KreditBee's USD 280 million Series E fundraise also stood out, propelling the company to unicorn status. Public market activity remained subdued during the quarter, with one IPO raising USD 97 million and two QIPs raising USD 310 million. While fundraising activity remained muted amid market volatility and global uncertainties, QIP proceeds increased significantly, primarily driven by Poonawalla Fincorp's USD 269 million fundraise.
Sector highlights:
• Fintech remained the most active segment with 31 deals worth USD 1.4 billion, led by Meta's USD 900 million investment in CRED and KreditBee's USD 280 million fundraise.
• Financial Services & Asset Management recorded 16 deals worth USD 690 million, with values nearly tripling quarter-on-quarter, driven by investments in Aditya Birla Capital and IIFL Capital Services.
• Insurance & TPAs saw deal values rise nearly fivefold to USD 388 million, led by Prudential plc's acquisition of Bharti AXA Life Insurance, which accounted for 95% of the segment's value.
• Banking & NBFCs recorded 12 deals worth USD 287 million, as investors remained focused on smaller-ticket transactions amid a cautious investment environment.
