India’s PE/VC Investments Reach USD 60.7 Bn in 2025: Report

India’s private equity and venture capital (PE/VC) ecosystem maintained steady momentum in 2025 despite global economic uncertainties, with investment activity recording one of its strongest performances to date. The sector witnessed continued growth in both deal value and volume, supported by strong investor interest and improving activity across several sectors.

According to EY India and the Indian Venture and Alternate Capital Association (IVCA) report PE/VC Agenda: India Trendbook 2026, PE/VC investments reached USD 60.7 billion across 1,475 deals in 2025. This represents an 8% year-on-year increase in deal value and a 9% rise in deal volume, marking the second-highest annual investment value recorded in India’s PE/VC market.

The report highlights that the industry remained resilient even as global markets navigated geopolitical tensions, policy changes and currency fluctuations. Investment momentum was largely driven by a rebound in growth and credit investments, while overall transaction volumes reached a record high during the year.

Vivek Soni, Partner and National Leader for Private Equity Services at EY India, said, “The year 2025 was a true testament to the resilience and maturity of the Indian PE/VC landscape. Investor sentiment was shaped by a confluence of global and domestic factors like India’s key political developments, the post-US election environment, geopolitical tensions and tariff-policy volatility.”

Growth investments played a major role in the year’s activity, registering a 56% rise in deal volume to reach 282 deals. The start-up segment also expanded, with deal volumes rising 19% to 767 transactions. However, other investment categories such as credit, buyouts and private investment in public equity (PIPE) deals saw a decline compared with the previous year.

Sectoral investment trends largely mirrored patterns seen in 2024. Financial services, infrastructure, real estate, technology and e-commerce together accounted for 72% of the total investments during 2025. Financial services emerged as the largest sector, overtaking infrastructure, which had led investment activity in the previous year.

The report also noted record-level investments across several sectors including financial services, real estate, food and agriculture, automotive, industrial products, and aerospace and defence.

Investment in real assets—comprising infrastructure and real estate—recorded a modest rebound, rising 2% after contracting the previous year. Meanwhile, pure-play PE/VC investments increased 12%, continuing to form a key part of India’s deal pipeline.

Exit activity also remained strong. PE/VC exits reached USD 32.9 billion across 257 transactions in 2025, making it the second-highest year for exits. Strategic exits rebounded sharply, increasing 211% year-on-year to USD 16 billion and accounting for nearly half of total exits.

Fundraising activity also surged, touching a record USD 23.2 billion during the year, compared with USD 9.8 billion raised in 2024. The number of fundraises rose 35% to 123, marking the highest annual count on record.

Despite the strong performance, the report notes that investors may adopt a cautious approach in 2026 amid policy uncertainties, volatile equity markets and geopolitical developments affecting global energy prices.

Soni said investors are likely to remain watchful in the near term but the long-term outlook for the Indian market remains positive. “In the near term, it is a wait-and-watch environment as investors assess market stability and earnings visibility. But the medium- to long-term outlook remains unequivocally positive, supported by India’s strong structural fundamentals and sustained global investor interest in India’s growth story,” he added.