Is India the Global SPAC Market’s Missing Piece?

As the SPAC (Special Purpose Acquisition Company) market rebounds in the U.S., a new opportunity is quietly emerging thousands of miles away—in the undercapitalized but high-potential middle tier of India’s private market.

The SPAC Dilemma: Too Much Cash, Too Few Targets

Between 2020 and 2022, the SPAC boom minted over 860 vehicles. But enthusiasm quickly outpaced execution. Many struggled to find credible merger targets within the 18–24 month timeline.

According to SPAC Analytics:

• 502 SPACs have liquidated as of early 2025

• In 2021 alone, 613 SPACs were issued; 162 liquidated, a rate more than double the historical average

• 140 liquidations occurred in 2023 alone

The common problem? Too many speculative, overvalued or unsustainable targets.

Call it the perfect match: hundreds of SPACs flush with capital but starved for quality targets, and a wave of high-margin, cash-generative Indian businesses that check all the boxes—governance, growth, and global scalability. This is not a fleeting trend. It’s a structural shift.

A Quiet Revolution in Indian Mid-Market

India’s “Missing Middle”—a cohort of companies generating $1M–$20M in revenue—is often overshadowed by the country's unicorn-hunting venture capital scene. Yet, these firms may be the most SPAC-ready segment in global private markets today.

These are not moonshot startups burning cash for growth. They are disciplined, capital-efficient companies operating in verticals like:

• Financial software & analytics

• Digital insurance

• SaaS & vertical platforms

• Tech-enabled logistics & B2B automation

With 15–30% EBITDA margins, clean corporate structures, and real cash flows, they offer everything the SPAC market has been craving—and missing—for the last five years.

Why Now?

1. SPAC-Ready Fundamentals

 After a flood of low-quality deals, investors have grown wary of speculative targets. India’s mid-market champions bring a different story: clear, transparent P&Ls, product-market fit, and governance practices that hold up to global scrutiny.

2. Digital Infrastructure Tailwinds

 India’s policy-driven digitization—UPI, GST, eKYC—is fueling B2B acceleration. This is turbocharging customer acquisition, compliance, and monetization in ways unheard of in other emerging markets.

3. Valuation Arbitrage

 These businesses are still priced at 6–10x EBITDA in private markets. For global buyers—and SPACs—they represent a massive arbitrage opportunity relative to U.S. or even Southeast Asian comparables.

4. Capital White Space

 Domestic capital is still chasing growth-stage unicorns, leaving the “Missing Middle” overlooked. Meanwhile, many of these companies are too mature for VC but too small for PE—ideal SPAC candidates.

India + Global SPAC: The Answer Lies in India’s Mid-Market

India’s “Missing Middle” represents a wellspring of untapped SPAC potential. These companies are:

• Mature but agile, capable of navigating post-merger public market dynamics

• Digitally native, yet grounded in capital discipline and real revenue

• Globally relevant, serving customers in the U.S., Europe, and Southeast Asia

If SPAC sponsors are serious about delivering sustainable returns and finding credible, high-quality targets, it’s time to broaden the search. The next wave of opportunity isn’t confined to Silicon Valley—it’s unfolding in Delhi, Bangalore, Pune, Chennai, and hundreds of other cities in India, where capital-efficient, high-margin businesses are quietly scaling with global potential.

This isn’t a trend—it’s a structural shift.

India’s “Missing Middle” is not just ready—it’s right-sized, resilient, and remarkably relevant to global public markets.

For SPACs seeking substance, scalability, and long-term value, India may be the most compelling destination on the map.

Disclaimer: In the article "Is India the Global SPAC Market’s Missing Piece?" above - Any views, comments or communication (above or in the past) should not be construed to be investment advice by Alternative Growth (hereafter referred to as “AltG”) in any form whatsoever. AltG does not make an offer to sell or solicit to buy any securities.