PE/VC investments fell 68% in May to $2.4 billion; deal count declined 24%

As a result of heightened geopolitical tensions, US tariff policy and other external headwinds, the investors are in a cautious and wait-and-watch mode, the report noted

The private equity (PE)/ venture capital (VC) capital continues to remain subdued in India, witnessing a limited deal flow and reduction in large deals (above $100 million). According to the latest IVCA-EY report, PE/VC investments slowed 68 per cent year-on-year (Y-o-Y) and 53 per cent month-on-month in May 2025 to $2.4 billion. The count of deals also lowered 24 per cent Y-o-Y in May 2025.

 

Investors are in a cautious and wait-and-watch mode due to factors such as heightened geopolitical tensions, US tariff policy and other external headwinds, the report noted.