India's PE-VC investments hit 3-yr high at $26 bn, exits at 4-yr low though

Equirus Report: India's PE-VC Deal Value Jumps 38%, AUM Crosses Three-Year Peak

Private equity (PE) and venture capital (VC) investments in India have touched a three-year high of $26 billion, underscoring renewed global confidence in India’s economic trajectory, said a new report by  Equirus Capital. 

 

"Strong agricultural output, robust monsoons, and a revival in consumer demand during the festive season have created a fertile environment for capital deployment across multiple sectors," noted the report.

 

In the first nine months of calendar year 2025, PE and VC investments have already exceeded the aggregate investment amount recorded in the whole of 2023 and 2024, respectively. The number of deals has also surged, with 1,363 transactions recorded in January–September 2025 compared to 1,170 deals in all of 2024 — a clear reflection of India’s expanding deal pipeline and investor enthusiasm.

 

“The increased deal value in calendar 2025 is because the proportion of smaller deals of less than $10 million in size have dropped to 40% of total vs 47% in CY 2024, while the percentage of mid-size deals in the range of $10–25 million have risen from 21% in calendar 2024 to 31% in calendar 2025 till date,” said Bhavesh Shah, Managing Director and Head – Investment Banking, Equirus Capital.

 

This change in deal composition has lifted the average deal value to $36.6 million in 2025, compared with $34.4 million in 2024 — signaling larger and more strategic investments by PE and VC players.

 

IT and Consumer Staples Lead Sectoral Upswing

 

India’s ongoing digital transformation has positioned information technology (IT) and consumer staples as standout sectors for investors. The IT sector’s share in total PE/VC deal value rose from 23% in 2024 to 35% in 2025, driven by strong demand for digital infrastructure, SaaS exports, and AI-enabled business solutions.

 

At the same time, consumer staples gained traction, accounting for 13% of total deal value in 2025, up from just 4% in 2024, as investors bet on India’s consumption growth, rural recovery, and festive spending cycle.

 

“On the other hand, sectors such as financials and healthcare saw their share in total investments in CY 2025 dip over the previous year. While the share of financials in overall PE/VC investments fell from 18% in CY 2024 to 11% in CY 2025, that of healthcare fell from 19% to 7%,” added Mr. Shah.

 

Exit Activity Moderates

 

While investment inflows have accelerated, exit activity has softened. The value of exits in calendar year 2025 dropped to a four-year low of $11 billion, down from $20 billion in 2024, $17 billion in 2023, and $20 billion in 2022. However, the dominance of block deals and secondary market sales—accounting for 52–67% of all exits between 2023 and 2025—demonstrates the continued depth and liquidity of Indian capital markets.

 

“The depth of India’s robust and liquid stock markets allows investors multiple exit routes — via IPOs, block deals, strategic sales and fund-to-fund transactions. This flexibility enables better price discovery and reflects the strength of India’s capital markets in supporting entrepreneurial ambition and the vision of a Viksit Bharat,” said Ajay Garg, Managing Director, Equirus group.

 

In 2025, financials (28%), healthcare (22%), and consumer discretionary (18%) accounted for the majority of exits, reinforcing investor focus on scalable, high-growth sectors.

 

“India is the cynosure of the global PE/VC community, having supported 13,000 deals and over $275 billion in total deal value in the past decade,” added M Garg.