India's PE/VC Investments Rise 9% in October Even as Deal Volumes Dip: EY-IVCA Report

Private equity and venture capital (VC/PE) investments in India increased by 9 per cent in October, compared to September 2025 in value terms.

According to a joint October investments report by EY & IVCA, October 2025 recorded a USD 5.3 billion in PE/VC investments, with a 9 per cent y-o-y increase from USD 4.9 billion in October. The number of deals, however, decreased to 102, a 9 per cent drop y-o-y and a 14 per cent decline month-on-month, with 145 deals in September 2025.

Compared to September 2025, pure-play PE/VC investments were up by 57 per cent at USD 3.2 billion, and real estate and infrastructure investments were down by 83 per cent at USD 1.7 billion. The number of deals, pure-play investments increased by 1 per cent, whereas real estate and infrastructure deals declined by 41 per cent y-o-y.

Private Investment in Public Equity (PIPE) deals were the highest in October 2025, followed by PE-VC investments at USD 2 billion. Financial services led from the sector point of view, attracting a total of USD 2.9 billion in investments, followed by e-commerce at USD 715 million.

Exits in PE/VC stood at USD 640 million across 14 deals in October, which is 43 per cent lower than October 2024, when deal values stood at USD 1.1 billion. Public exits, including open market and IPO, accounted for 73 per cent of total exit value, at USD 467 million. Top deals included an open market exit by Aditya Birla Capital, selling 2 per cent of its stake from Advent, at USD 186 million.

Vivek Soni, Partner and National Leader, Private Equity Services, EY India, said that the industrial sector is expected to witness strong demand in the coming years, supported by large-scale infrastructure development and government-led capital expenditure programs.

"Additionally, the ongoing energy transition toward renewables, coupled with a robust demand for defense and automotive products, is expected to play a pivotal role in driving growth across industrial products," said Soni.

The PE/VC landscape in India is set for an active phase, according to Soni, and is being shaped by a series of key macro and micro developments. "Q2 earnings highlighted a mixed corporate outlook—banking, IT, and FMCG remained resilient while commodities and manufacturing faced margin and demand pressures. The Bihar election results and potential shifts in US trade policies under the Trump administration could positively impact capital flows and investor sentiment."

According to the report, GST collections have remained robust, and the decline in the October Consumer Price Index is supposed to provide the Reserve Bank of India (RBI) with a bit of wiggle room for potential rate cuts - a move that could accelerate capex spending and consumption-led growth.

"With the capital market valuations remaining buoyant and the appetite for IPO's remaining strong, valuations continue to challenge private deal-making. A favourable US-India FTA could potentially provide the trigger for sentiment change – we remain cautiously optimistic," added Soni.