Information on software company acquisitions in India for 2025 is limited, as comprehensive data for the year is not fully available. However, based on available sources, here are some notable acquisitions and trends involving software companies in India in 2025.
Specific Acquisitions in 2025
Ciklum Acquires CodeAstu:
Details: UK-based software firm Ciklum acquired CodeAstu, an Indian company, to expand its engineering capabilities and strengthen its presence in the U.S. market.
Date: Announced on June 12, 2025
Business Model Impact: This acquisition aligns with Ciklum’s shift toward a value-driven model, emphasizing specialized skills in custom software development and AI-driven solutions. It moves away from cost-arbitrage to co-innovation, leveraging India’s talent pool for high-value engineering services.
DRC Systems Acquires Inexture Solutions
Details: DRC Systems India Limited invested in Inexture Solutions Limited, making it a subsidiary. Inexture specializes in custom software development, web/mobile apps, and cloud services.
Date: Announced on June 17, 2025
Business Model Impact: The acquisition strengthens DRC’s SaaS and cloud-based offerings, adopting an outcome-based model where revenue is tied to performance metrics (e.g., KPIs). This reflects a trend toward flexible, client-centric engagement models that prioritize long-term partnerships.
Sapiens Acquires Candela
Details: Israel-based Sapiens Insurance Software Solutions acquired Candela, a Bengaluru-based company, for $22 million. This acquisition aimed to enhance Sapiens’ insurance software offerings.
Date: Announced on April 25, 2025.
Business Model Impact: Sapiens integrates Candela’s AI-driven insurance solutions into its platform, shifting toward a subscription-based SaaS model. This enhances scalability and recurring revenue, catering to global insurers’ digital transformation needs.
Krutrim Acquires Bodhi Computing
Details: Indian AI startup Krutrim acquired Bodhi Computing, a semiconductor startup, to expand into new sectors. The financial details were not disclosed.
Date: Announced on June 14, 2025.
Business Model Impact: Krutrim’s move reflects a platform-based model, integrating hardware and software to offer end-to-end AI solutions. This acquisition supports vertical integration, reducing dependency on external vendors and enabling innovation in AI infrastructure.
Sarvam Acquires Samta Law
Details: Indian AI startup Sarvam acquired Samta Law, a legal tech platform, to diversify its portfolio. This move indicates a trend of AI companies branching out into adjacent sectors.
Date: Announced on June 14, 2025.
Business Model Impact: Sarvam’s acquisition diversifies its portfolio, adopting a hybrid model combining AI and legal tech SaaS. This enhances cross-selling opportunities and strengthens its position in niche markets, emphasizing scalability and customer retention.
General Trends in 2025:
Resurgence in M&A Activity: India saw a revival in mergers and acquisitions in 2024, a trend expected to continue into 2025, driven by strong economic growth (RBI’s GDP forecast for FY25 at 7.2%) and investor confidence.
Focus on Technology and AI: Acquisitions in 2025 often targeted companies with expertise in AI, cloud services, and custom software development, reflecting global demand for advanced tech solutions. Indian IT companies like TCS, Infosys, and HCL continued to play significant roles in global tech markets, with some engaging in strategic acquisitions to bolster capabilities.
Artificial Intelligence
The software and IT sectors remained key areas for M&A due to demand for AI, cloud computing, and digital transformation services.
Global Interest in Indian Startups: International companies showed interest in acquiring Indian software startups to leverage India’s skilled workforce and growing tech ecosystem. For example, Sapiens’ acquisition of Candela highlights this trend.
EdTech and Legal Tech Acquisitions: While not strictly software, related sectors like EdTech saw significant M&A activity, with 8 acquisitions in India by May 2025, indicating a broader tech consolidation trend. Legal Tech also saw $107M in funding and 6 acquisitions, suggesting software-driven solutions in niche markets.
Business Model Development in Software Acquisitions
Acquisitions in India’s software sector in 2025 are closely tied to evolving business models, driven by global demand for digital transformation, AI, and cloud solutions. Here’s how these acquisitions influence or reflect business model development:
Shift from Cost-Arbitrage to Value-Driven Models:
Context: Historically, Indian software firms relied on cost advantages for outsourcing. However, 2025 acquisitions show a pivot toward value creation, focusing on specialized skills (e.g., AI, cloud, blockchain) and innovation.
Example: Ciklum’s acquisition of CodeAstu emphasizes access to India’s skilled workforce for high-value engineering, aligning with a co-innovation model where clients and vendors collaborate on cutting-edge solutions.
Impact: Companies adopt outcome-based contracts, linking payments to measurable results (e.g., KPIs), fostering trust and long-term partnerships. This shift enhances competitiveness in global markets.
SaaS market in India
Flexible pricing models, like freemium or tiered subscriptions, attract diverse client segments.
Rise of SaaS and Subscription-Based Models
Context: The SaaS market in India is projected to grow significantly, with a global valuation of $317.5 billion in 2025 and a CAGR of 18.4% through 2032.
Example: DRC Systems’ acquisition of Inexture and Sapiens’ acquisition of Candela bolster SaaS offerings, focusing on cloud-based, subscription-driven solutions. These models ensure recurring revenue and scalability.
Impact: Acquisitions enable firms to integrate complementary technologies (e.g., AI-driven CRM, insurance platforms), enhancing user-centric designs and customer retention.
Platform and Ecosystem Development
Context: Companies are moving toward platform-based models, integrating multiple services to offer end-to-end solutions.
Example: Krutrim’s acquisition of Bodhi Computing supports vertical integration, combining AI software with semiconductor capabilities to create a comprehensive AI ecosystem.
Impact: This model reduces reliance on third-party vendors, enhances innovation, and positions firms as one-stop solution providers. It also supports cross-selling and upselling, improving revenue streams.
Focus on Niche Specialization
Context: The demand for niche expertise (e.g., AI, legal tech, insurance software) is projected to surge 30–35% in 2025.
Example: Sarvam’s acquisition of Samta Law targets the legal tech niche, while Sapiens’ acquisition of Candela focuses on insurance software.
Impact: Acquisitions enable firms to build specialized centers of excellence, catering to specific industries. This enhances differentiation and aligns with client expectations for tailored, high-impact solutions
Hybrid and Agile Engagement Models
Context: Flexible engagement models, such as hybrid (nearshore/offshore) and agile methodologies, are gaining traction.
Example: DRC Systems’ acquisition of Inexture supports hybrid models, combining offshore development with client-specific outcomes.
Impact: These models improve delivery speed, reduce costs, and enhance client collaboration. Agile methodologies, backed by tools like CI/CD and DevOps, ensure rapid iteration and quality assurance.
Broader Trends in Business Model Development
Digital Transformation: Acquisitions are driven by the need to support clients’ digital transformation, with a focus on AI, cloud, and IoT. The Indian custom software market is expected to grow at a CAGR of 28.5% from 2025 to 2030, reaching $10,552 million.
Global Competitiveness: Indian firms leverage acquisitions to compete globally, integrating advanced technologies and adopting scalable models like SaaS and platforms.
Talent and Innovation: Access to India’s vast talent pool (third-largest globally for AI) enables firms to innovate and develop specialized solutions, as seen in Krutrim’s and Sarvam’s acquisitions.
Regulatory Support: The Union Budget 2025–26 allocates Rs. 500 crore for AI education and research, fostering an ecosystem conducive to innovative business models.
By leveraging India’s talent and technological ecosystem, firms strengthen global competitiveness and scalability, aligning with trends like AI integration and outcome-based contracts. For further details, monitoring company reports or industry updates would provide deeper insights.
Limitations
- Incomplete Data: Specific acquisitions in the software sector for 2025 are sparsely documented in the provided sources, and no comprehensive list exists for the full year. Most sources focus on 2024 or earlier trends.
- Lack of Financial Details: Many acquisitions, like Krutrim’s and Sarvam’s, lack disclosed financial figures, making it hard to assess their scale.
- Sector Overlap: Some acquisitions (e.g., in EdTech or Legal Tech) involve software but are not purely software companies, complicating categorization.
Conclusion:
In 2025, India’s software sector saw strategic acquisitions like Ciklum’s purchase of CodeAstu, DRC Systems’ acquisition of Inexture, and Sapiens’ acquisition of Candela, alongside AI-driven deals like Krutrim’s and Sarvam’s. These reflect a broader trend of consolidation in tech, driven by demand for AI, cloud, and custom software solutions. These acquisitions drive shifts toward value-driven, SaaS, and platform-based models, emphasizing niche specialization, agile engagement, and digital transformation.
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