Did you hear about that Indian edtech firm getting snapped up for half a billion?
No? That’s the thing. While global headlines focused on Wall Street’s resurgence and Europe’s buyout boom, India’s tech sector quietly made waves of its own. Several Indian startups—especially in AI, fintech, and logistics—secured major exits this financial year, quietly riding the coattails of a global private equity (PE) revival.
According to McKinsey’s Global Private Markets Review 2025, PE dealmaking hit $2 trillion in 2024—a 14% increase from the previous year, and the third-most-active year on record. This comeback signals a major shift in investor confidence, fueled by falling interest rates, more accessible credit, and renewed appetite for tech-led growth.
India’s Quiet Winners: The Startups Behind the Buyouts
Several Indian startups closed major buyout or strategic acquisition deals in FY24–25, each with unique value propositions that aligned with global PE priorities—compliance-readiness, unit economics, and regional scalability.
Key legal pointers for buyouts and M&A in India:
- The Companies Act, 2013
- SEBI Takeover Code (SEBI SAST Regulations, 2011)
- The Competition Act, 2002
- Foreign Exchange Management Act (FEMA), 1999
- Insolvency and Bankruptcy Code (IBC), 2016
- Income Tax Act, 1961
- Sector-Specific Regulatory Frameworks
Access Healthcare: The Quiet Giant in Healthtech Gets Scooped Up
In one of the more strategic and under-the-radar buyouts this financial year, New Mountain Capital acquired a significant majority stake in Access Healthcare, a global provider of revenue cycle management (RCM) services. Founded in 2012, Access Healthcare operates across India, the Philippines, and the United States—powering back-end financial operations for hospitals and health systems.
While not as flashy as a consumer tech exit, this deal underscores a critical truth: India’s most attractive assets today are deeply embedded in essential infrastructure—healthcare, logistics, and enterprise tech—not just direct-to-consumer plays.
This isn’t just a buyout—it’s a strategic foothold in the future of healthcare operations, and a sign that India’s backend-tech brilliance is finally being priced right.
Haldiram’s Billion-Dollar Bite: Temasek Enters the Indian Consumer Icon
In what is now the largest private equity deal in India’s consumer sector, Singapore-based Temasek Holdings acquired nearly 10% stake in Haldiram Snacks for approximately ₹8,600 crore (~$1 billion), pegging the homegrown FMCG giant at a staggering ₹86,000 crore ($10 billion) valuation.
This move isn’t just a vote of confidence in India’s snack food empire—it’s a signal that PE money is no longer shying away from legacy brands, especially when they come with scale, trust, and untapped global potential.
The legal lens: While not a full buyout, this strategic stake raises classic PE considerations: valuation transparency, minority shareholder rights, and governance protections. Given Haldiram’s complex business structure—with multiple regional entities and IP ownership concerns—deal structuring and due diligence likely involved extensive negotiations, especially around brand licensing, distribution rights, and retail expansion strategies.
Temasek’s bet is as much on the future of Indian consumption as it is on Haldiram’s transformation into a modern FMCG powerhouse. The deal reflects a broader shift in PE strategy: not just chasing tech but backing brand equity that spans generations.
The Nature of This Year’s Buyouts: Strategic and Silent
Unlike the acquisition spree of 2021—fueled by cheap capital and hypergrowth valuations—2025’s deals are defined by careful targeting. Buyers are no longer chasing flashy growth; they’re looking for companies with stable cash flows, clear regulatory standing, and scalable technology. The result: fewer headlines, but stronger fundamentals.
These are not vanity deals. They’re value deals.
The Legal Lens: What Powers a Buyout in India?
Behind every headline-making buyout or discreet PE stake lies a carefully choreographed legal process. Whether it’s Temasek’s billion-dollar play for Haldiram or a cross-border acquisition of a tech startup, India’s legal framework for M&A is robust, layered, and essential reading for dealmakers. Here’s a breakdown of the key legal instruments that shape M&A in India—minus the jargon.
1. The Companies Act, 2013
This is the foundation of corporate restructuring in India.
- Sections 230 to 240 govern mergers, demergers, and amalgamations.
- It sets the rules for board approvals, shareholder meetings, and National Company Law Tribunal (NCLT) oversight.
- Most domestic M&A activity runs through this channel, especially when companies are unlisted.
2. SEBI Takeover Code – The Rulebook for Listed Deals
Any acquisition involving a listed company must comply with SEBI’s regulatory framework.
- The SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, ensures fairness and transparency.
- It mandates disclosures, open offer requirements, and pricing mechanisms to protect public shareholders.
3. The Competition Act, 2002 – Preventing Market Monopolies
Deals that could significantly impact market competition require approval from the Competition Commission of India (CCI).
- This applies to large transactions across sectors where market share consolidation is a concern.
- CCI clearance is mandatory for deals crossing certain value thresholds to ensure a level playing field.
4. FEMA, 1999 – Governing Cross-Border Transactions
Any M&A transaction involving foreign investment must comply with the Foreign Exchange Management Act.
- It covers inbound FDI, outbound acquisitions, pricing norms, and sectoral caps.
- The Reserve Bank of India (RBI) and Department for Promotion of Industry and Internal Trade (DPIIT) often play crucial roles in these approvals.
5. Insolvency and Bankruptcy Code (IBC), 2016 – Acquiring Distressed Assets
The IBC provides a framework for acquiring companies that are undergoing insolvency.
- Through the Corporate Insolvency Resolution Process (CIRP), bidders can acquire assets with clean slates and court approval.
- This mechanism has become increasingly popular for PE firms looking to pick up undervalued but viable assets.
6. Tax Laws – Structuring the Deal Right
Tax considerations can make or break an M&A transaction.
- The Income Tax Act, 1961, governs capital gains, exemptions under specific restructuring provisions (like Section 47), and transfer pricing for cross-border elements.
- Proper structuring is essential to avoid post-deal tax burdens that could erode value.
7. Sector-Specific Regulations – One Size Doesn’t Fit All
Certain industries are governed by additional regulators:
- Banking deals require RBI approval.
- Insurance transactions must align with IRDAI regulations.
- Telecom deals may involve DoT clearances.
- Pharma M&A is often subject to oversight from the Ministry of Health and DCGI.
These requirements must be factored into the transaction timeline and strategy.
How the Legal Infrastructure is Evolving
India’s legal and deal infrastructure is slowly adapting to the demands of next-generation private equity. Some trends on the horizon include:
- Digitized Cap Tables and Smart Contracts
Early-stage companies are experimenting with tokenized equity and blockchain-based cap table management. While Indian law is yet to formally recognize such tools, global investors increasingly expect transparency via these digital platforms. - New Clause Templates for AI Startups
Standardized clauses for liability, indemnity, and intellectual property in AI-based deals are emerging. These cover issues like model training sources, accuracy benchmarks, and regulatory compliance under evolving AI governance norms.
What Comes Next: The Need for Legal Preparedness
India’s tech ecosystem is at an inflection point. With global PE players looking beyond the top metros and into mid-sized, compliance-ready startups, there is a growing need for founders to proactively audit their legal and data infrastructure.
For legal practitioners, this means evolving beyond traditional M&A checklists. They must now integrate tech diligence, cross-border regulatory awareness, and data privacy readiness into every transaction.
The next wave of buyouts won’t just depend on business metrics. They’ll depend on legal hygiene.
The Real Question
With global private equity deal value soaring to $2 trillion in 2024—the third highest on record—it’s easy to get distracted by headline-grabbing megadeals in the West. But here’s the sharper lens: which Indian startups quietly cashed in on this global capital surge, and why did these low-profile buyouts matter?
The answer lies in a new kind of playbook: strategic, regulation-ready, tech-first companies that delivered solid fundamentals over flashy valuations. While India may not have dominated the global PE headlines this year, but make no mistake—its startups are very much in play. The 2024–25 financial year has shown that Indian innovation, when paired with regulatory readiness, is deeply attractive to global capital.
