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The Asia-Pacific (APAC) region has witnessed a 4% year-on-year (YoY) decline in deal volume* during the first quarter (Q1) of 2025, driven primarily by a slowdown in venture capital (VC) activity. Despite the overall dip, the region showcased mixed dynamics, with India and Japan reporting double-digit growth in deal volume, offsetting notable contractions in China, Australia, South Korea, and Singapore, reveals GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database revealed that the total number of VC deals announced in the APAC region YoY fell by more than 10%. In contrast, mergers and acquisitions (M&A) deal volume registered a YoY growth of around 1% while the number of private equity deals were up by around 4%.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The APAC deal landscape presents a mixed picture reflecting both resilience and challenges across different markets within the region. While the overall deal volume has seen a slight YoY decline in Q1 2025, certain countries have exhibited notable growth showcasing their potential even in a challenging environment.”
China, traditionally a powerhouse in the APAC deal landscape, experienced a notable YoY decline with deal volume dropping by approximately 18%. Australia, South Korea and Singapore also experienced fall in deal activity during the review period.
Conversely, India emerged as a bright spot, with deal volume increasing by more than 14% during Q1 2025 compared to the same period in the previous year. Japan also showcased a remarkable growth, with deal volume surging by around 27% YoY.
Bose concludes: “The diverging trends in deal activity across APAC underscore the shifting investor sentiment and evolving macroeconomic dynamics. As capital allocation becomes more selective, regional agility and policy stability will be the key determinants of future deal momentum.”
*Coverage includes mergers & acquisitions (M&A), private equity and venture financing deals.
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.
