Mergers & acquisitions on rise as startups diversify into newer spaces

The second half of 2022 will see further consolidation as established start-ups look for M&A opportunities at attractive valuation to increase market share

With funding under pressure and its subsequent impact on valuations, larger startups are looking for mergers and acquisitions (M&A) as they diversify into newer spaces and add capacity.

This trend was also reflected in the first half of 2022 (January-June). According to Tracxn analysis, till July 26, total acquisitions stood at 169, with the average acquisition price at $90.2 million. A significant jump compared to the first half of 2021 when a total of 115 acquisitions fetched an average of $180 million. Between January-December 2021, 244 acquisitions occurred, and the average acquisition price was $227 million.

Another reason for the