During the first half (H1) of 2025, the Asia-Pacific (APAC) deal landscape exhibited a nuanced trend, characterized by a modest increase in overall deal volume, yet marked by significant variations across different deal types and key markets. The total number of deals announced in the APAC region increased by around 3% in H1 2025 compared to the same period in 2024, according to GlobalData, a leading data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The growth, however, masks underlying shifts in specific countries that warrant closer examination as the APAC deal landscape showcased mixed signals across different key markets in H1 2025. While some key markets in the region not only showcased resilience but also registered significant double-digit growth, others witnessed double-digit declines.”
An analysis of GlobalData’s Deals Database revealed that India and Japan, in particular, have emerged as bright spots, with India witnessing a robust increase of around 12% in deal volume in H1 2025 compared to H1 2025 whereas deal activity in Japan was up by a massive 25%. This growth is indicative of India’s burgeoning startup ecosystem, while Japan attracted strategic investments in technology and innovation.
In contrast, China’s deal volume remained mostly at the same level, reflecting a cautious investment environment likely due to regulatory challenges. Meanwhile, other markets, such as South Korea and Singapore, faced more pronounced declines, with South Korea’s deal volume dropping by approximately 20% YoY and Singapore experiencing a decrease of about 16%. These trends highlight the varying degrees of investor confidence across the region.
M&A emerged as a standout performer, with a notable increase in deal volume of around 9% year-on-year (YoY) in H1 2025. Conversely, the number of private equity deals fell by around 7% and venture financing deal volume was also down by around 5% in H1 2025 compared to H1 2024.
Bose concludes: “This downturn in private equity and venture financing may indicate a cautious approach among investors, who are likely reassessing risk profiles in light of fluctuating market conditions and geopolitical tensions. The decline in venture financing, in particular, further underscores the challenges faced by early-stage companies in securing funding amidst a tightening investment climate.
“The surge in M&A activity, on the other hand, can be attributed to a renewed appetite for consolidation among companies seeking to enhance operational efficiencies and expand market share in an increasingly competitive landscape.”
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain
