PE/VC investments highest in a decade, says Equirus Capital report

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Private equity and venture capital (PE/VC) investments in India have surged to their highest levels in a decade, signalling renewed confidence in the country’s long-term growth potential, according to a new research report by financial services firm Equirus Capital. It said that financial sponsors executed 1,761 deals between January and November 2025, surpassing the previous record of 1,726 deals in 2021.

 

Notably, India has consistently recorded over 1,000 PE/VC deals every year for the past 10 years. The report noted that, in addition to the deal count, investment value has also climbed. In calendar year 2025, to date, PE/VC investments worth $34 billion have been recorded, up 54 per cent over the $22 billion deployed in 2024. The average deal size, too, grew from $34.4 million in 2024 to $41.6 million in 2025.

 

The information technology (IT) and consumer discretionary sectors remain the biggest beneficiaries, attracting over 50 per cent of total investments both by value and volume.

 

Among deal sizes, smaller deals continued to dominate activity, with transactions up to $10 million accounting for over 30 per cent of total deal volume over the last five years. The report added that mid-market deals between $10-25 million and $25-50 million also expanded their share significantly from over 20 per cent in 2020 to over 40 per cent, reflecting investor appetite for scalable and early-growth opportunities.

 

"Calendar 2025 has already seen a 50 per cent jump in investments made by PE/VC funds in the first 11 months as compared to the whole of calendar 2024. With large new funds being raised by PE firms on the back of record exits in previous funds, we believe India has shown its resilience as a market that offers financial investors multiple viable routes for exit once they have managed to scale up and grow their investee companies," said Bhavesh Shah, managing director and head investment banking, Equirus Capital.