New Delhi, Oct 26 : The Indian technology sector saw 87 deals valued at $1.4 billion in the third quarter this year, a 40 per cent surge in values over the previous quarter, a report showed on Thursday. The deal volumes, however, fell by 13 per cent in the July-September period. The rise of generative AI is reshaping the industry, with prominent tech players actively embracing and leveraging this technology to enhance efficiency across various sectors, said the report by Grant Thornton Bharat. "With a substantial 88 per cent decrease in deal values compared to the previous year, the tech industry must consider re-evaluating investment strategies. Emphasising innovation in areas like spacetech, SaaS, AI, and cloud, investors can navigate the evolving landscape," said Raja Lahiri, Partner and Technology Sector Leader, Grant Thornton Bharat. In the mergers and acquisitions sector, the third quarter saw 20 deals valued at $882 million, reflecting a 9 per cent decline in volumes compared to the previous quarter but a substantial 573 per cent increase in deal values. MapMyIndia invested $1.1 million in Mappls KOGO, an AI-driven travel advisor. Agritech start-up Leads Connect secured $60.2 million from BL Agro Industries. The Proximus Group's acquisition of a majority stake in Route Mobile for $721 million marked the biggest deal in the SaaS market, said the report. In the private equity (PE) landscape, there was a marginal decline in technology deals, with 67 transactions totaling $564 million, reflecting a 14 per cent decrease in volumes and a 37 per cent decline in deal values compared to Q2 2023. Nazara Technologies secured funding from SBI mutual fund schemes for $62.2 million in the technology startup segment. Perfios received a substantial $229 million investment from Kedaara Capital, marking one of the largest B2B SaaS deals of the year. There were three IPOs in the IT sector collectively valued at $253 million in the period. /IANS