According to InVenture analysts, the total value of announced and completed M&A transactions in Ukraine in 2025 reached $1.35bn, up 10% year-on-year from $1.2bn in 2024. The number of transactions increased to 123 from 114 a year earlier, reflecting a moderate recovery in investment activity despite ongoing wartime risks and constrained access to capital. Taking into account limited deal publicity and low disclosure levels for a significant share of transactions, InVenture estimates the actual size of Ukraine’s M&A market in 2025 at around $1.7bn.
The study highlights the dominance of domestic capital. Local investors accounted for 81 transactions (65% of the total), with a combined value of approximately $1.1bn, representing more than 80% of total deal value. Foreign investors participated in 43 transactions (35%), but their contribution in value terms remained relatively modest at around $250m (19% of the market). According to InVenture, this reflects elevated country risk and the continued caution of international capital.
A separate section of the report focuses on the InVenture M&A Index (IMAI), a composite indicator combining quantitative and qualitative market parameters. After falling to 20 points in 2022, the index has increased for the third consecutive year: 42 in 2023, 44 in 2024, and 49 in 2025, indicating a transition from shock to adaptive recovery.
The dynamics of the InVenture M&A Index show that Ukraine’s M&A market has moved beyond the shock phase and entered adaptive recovery. However, current index levels still remain below pre-war highs due to a limited number of large-scale transactions and the restrained presence of foreign investors. In the coming years, the key driver will be not the number of deals, but their quality and strategic rationale, said Oleksii Oleinikov, Managing Partner at InVenture.
Among the key drivers of M&A activity in 2025, InVenture points to currency and regulatory restrictions on capital outflows, the relocation of businesses from frontline regions to central and western Ukraine, a growing share of distressed assets due to financial pressure on companies, and rising demand from the defense-industrial sector for production sites, warehouses, and industrial real estate. Privatization also remained an important factor and, according to InVenture, is one of the few segments with relatively high transparency and clear entry rules.
The sectoral structure of Ukraine’s M&A market in 2025 reflected the dual nature of the wartime economy. By number of transactions, the technology sector — IT, digital, and telecommunications — remained the leader, accounting for 45 deals, or more than one-third of all transactions during the year. At the same time, real assets dominated in terms of capital deployed: construction and real estate ($326m), agriculture ($163m), and food processing ($153m). This structure points to a shift in investment behavior from short-term liquidity considerations toward pragmatic medium- and long-term strategies focused on control over tangible assets, export chains, hard-currency revenues, and post-war recovery potential.
The largest M&A deal of 2025, according to InVenture, was Kyivstar’s acquisition of online taxi service Uklon for $155m. The second-largest transaction was Bunge’s exercise of an option to acquire 85% of ViOil for $138m. Among the largest real estate deals, InVenture cites City Capital Group’s purchase of the first phase of the Leonardo Business Center and the Ukraina Department Store shopping mall for $70m.
The study also emphasizes that a number of significant transactions are not captured in traditional M&A statistics due to the nature of the instruments used. In particular, InVenture highlights large non-equity and structured finance deals, including revenue-based financing, ABS instruments, and other non-dilutive funding mechanisms. The report also mentions the $760m investment announced at the end of 2025 in defense-tech company Fire Point as part of the acquisition of a 30% stake by UAE-based EDGE Group. This transaction was not included in the statistics as it remained at the announcement and regulatory approval stage.
In its outlook, InVenture notes that in 2026 market dynamics will primarily depend on the security situation and access to capital. The firm expects domestic investors to remain the key deal drivers, while foreign capital will continue to act selectively, focusing on strategic opportunities and early entry into the future recovery. At the same time, according to InVenture, international financial institutions and risk-sharing instruments will continue to play a critical role in enabling many investment projects.
Read the full report: “Investment and M&A Market in Ukraine 2025 — Between a Wartime Economy and Long-Term Recovery.”
