PE investments in India down to 7-year low in Q1 2025: Top deals so far

This marks the weakest start to a year by value since 2018. The number of PE deals also decreased by 16.7% year-on-year due to global economic uncertainties, geopolitical tensions.

Private equity (PE) investments in India experienced a significant slowdown during the first quarter of 2025, with the total equity invested amounting to $1.98 billion – a 53.7% decline from the first quarter of 2024 and a 50.5% sequential drop compared to the fourth quarter of last year. shows data analysed by LSEG Deals Intelligence.

 

 "This marks the weakest start to a year by value since 2018. The number of PE deals also decreased by 16.7% year-on-year, as global economic uncertainties, geopolitical tensions, and valuation constraints slowed the pace of investments," said Elaine Tan, Senior Manager, LSEG Deals Intelligence.

 

 

Despite these challenges, the technology sector continues to thrive, attracting interest in areas like AI, fintech, healthcare tech, and ongoing digital transformation. At the same time, the growing focus on renewables and sustainability highlights investor priorities aligned with India’s trajectory toward innovation and sustainable solutions. 

 

"The slowdown in IPO activity—driven by market volatility and valuation concerns—combined with the anticipated decline in interest rates in 2025, is expected to create a favorable environment for PE and VC investments and opportunities," said LSEG Deals Intelligence.

 

Key Deals in 2025 year-to-date  

Meesho Payments Pvt Ltd – This internet-specific company secured the largest deal, raising $270 million from five firms and five funds. 

 

Nexus Select Trust – In the financial services sector, Nexus Select Trust raised $105.4 million through a deal involving one firm and one fund.

 

Naffa Innovations Pvt Ltd – A significant investment of $78 million was made in Naffa Innovations Pvt Ltd, a company in the computer software industry, highlighting the strong investor confidence in the Indian software development space.

 

Hiveloop Technology Pvt Ltd – Another internet-specific company, Hiveloop Technology, attracted $75 million in investment from two firms and two funds, continuing the trend of internet and technology businesses drawing substantial capital.

 

Girnar Insurance Brokers– Girnar Insurance Brokers raised $70 million, further emphasizing the growth potential within India's internet-driven service industries.

 

Leap Finance Inc – In the consumer-related sector, Leap Finance secured $65 million. As an emerging player in financial services for international students, Leap’s deal demonstrates the growing demand for niche services tailored to the younger, globalizing demographic.

 

Oravel Stays Ltd – Known for its brand OYO, Oravel Stays raised $64.1 million in equity investments. The hospitality sector, especially digital-first models like OYO, continues to be an area of interest for private equity.

 

Hella Infra Market Pvt Ltd – This infrastructure-focused internet company raised $57.6 million, signaling the increasing role of digital platforms in the traditionally offline infrastructure sector.

 

Draftspotting Technologies Pvt Ltd – Specializing in computer software, Draftspotting Technologies garnered $54.1 million, reflecting the rise of tech startups in India’s fast-growing software sector.

 

Cashfree Payments India Pvt Ltd – Rounding out the list, Cashfree Payments secured $53 million. As one of India’s leading payment gateway companies, Cashfree’s success in attracting investments underscores the booming digital payment industry.

 

 The total equity invested in the first quarter of 2025 amounted to $1.98 billion, reflecting a  decline of 53.7% compared to the previous year. However, certain sectors showed impressive growth, while others faced significant downturns.  Here’s a breakdown of the industry-specific trends based on PE investments: 

 

Internet-Specific Sector:

The internet-specific industry experienced with 81 deals across 122 firms, attracting a total of $860.9 million in equity investment. This marked a notable 42.2% YoY increase in investment, underlining the sustained demand in the digital and internet-driven economy.

 

Computer Software:

Similarly, the computer software sector also saw an increase in equity investment, with 81 deals involving 146 companies. The sum of equity invested stood at $450.1 million, reflecting a 23.8% rise YoY, highlighting the continued expansion of India’s tech and software ecosystem.

 

Financial Services:

On the other hand, the financial services industry faced a sharp decline in investment, down 52.9% from the previous year. With only 11 deals across 30 firms, the total investment was just $191.8 million, signaling a cooling off in this sector.

 

Consumer-Related Industries:

The consumer-related sector experienced a similar downturn, with equity investments totaling $172 million, reflecting a 45.8% decrease YoY. 38 deals were made across 72 companies.

 

Transportation:

The transportation industry saw an even steeper fall, with only $68.5 million invested, a 58.4% drop. The 20 deals involved 30 firms, indicating a significant reduction in investment in this area.

 

Medical/Health:

The medical and health sector, while still attracting attention, experienced a 13% decline in investment. With 17 deals and 23 companies involved, the equity invested totaled $62.4 million, suggesting a more cautious outlook in healthcare-related investments.

 

Industrial/Energy:

The industrial and energy sectors also saw a decline in investment, down 20.4% YoY. A total of $40.6 million was invested across 24 firms in 10 deals.

 

Business Services:

One of the standout performers in Q1 2025 was the business services industry, which saw a massive 272.3% increase in equity invested. Despite just 6 deals across 8 companies, the total sum of equity invested reached $39.9 million.

 

Computer Hardware:

With 10 deals across 35 companies, the computer hardware sector saw an impressive growth of 101.9%, with total equity investments reaching $32.8 million.

 

Semiconductors/Electronics:

The semiconductor and electronics industry, in contrast, experienced a dramatic fall of 69.9% in investments, with only $14.9 million invested in 5 deals across 20 firms.

 

Manufacturing:

The manufacturing sector saw a huge surge in investment, up by an astonishing 2958.3%. Although the overall sum was relatively modest at $14.7 million, the growth was remarkable, driven by 9 deals across 17 companies.

 

Construction:

Similarly, the construction industry saw a rise of 430.5% in equity invested, amounting to $13.7 million. However, the sector saw only 2 deals involving 6 companies.

 

Communications:

The communications industry faced a catastrophic decline of 99.4%, with just $13.4 million invested in 4 deals

 

Biotechnology:

Biotechnology saw a drastic reduction in investment, down by 78.7%. With just $0.6 million invested across 2 deals.

 

Utilities:

The utilities sector also experienced a sharp 97.5% drop in equity investment, with only $0.1 million invested across 2 firms.

 

Agriculture, Forestry, and Fishing:

Agricultural, forestry, and fishing sector experienced a complete lack of investment in Q1 2025, with no recorded equity investments.