PE/VC funding up 31% to $5.6 bn in Nov; exits at $3.2 bn, IPOs lead

By number of deals, the transactions were flat at 101 year-on-year and slightly higher than 109 in October.

Private equity and venture capital (PE/VC) investments in India rebounded sharply in November 2025, rising 31 per cent year-on-year to $5.6 billion, signalling renewed momentum after a relatively muted first half of the year. The jump has narrowed the gap with last year’s fundraising pace, with total PE/VC investments touching $49.3 billion in the first 11 months of 2025, or nearly 88 per cent of the $56.2 billion recorded in full-year 2024, according to a joint report by industry body IVCA and consultancy EY.

 

Deal values in November were also marginally higher on a month-on-month basis, increasing 4 per cent from $5.4 billion in October, even as deal volumes remained broadly stable. 

 

 

The number of transactions stood at 101 deals, flat compared to a year ago and slightly lower than 109 deals in October.

 

Industry experts expect full-year deal values to close broadly in line with, or marginally below, last year’s totals. “Valuations continue to remain elevated, and the bid-ask spread between sellers and investors continues to be the main impediment to faster PE/VC deal closures,” said Vivek Soni, Partner at EY. He added that investors remain cautiously optimistic, with expectations that a potential US-India free trade agreement could help reset risk appetite and improve deal momentum.

 

Buyout investments emerged as the largest contributor to PE/VC activity in November, accounting for $2.1 billion, a 37 per cent increase year-on-year. Startup investments followed closely at $1.7 billion, marking a strong 56 per cent jump, indicating renewed confidence in early-stage and venture-backed companies after a prolonged funding slowdown.

 

Growth investments also showed sharp improvement, more than doubling to $811 million, reflecting selective capital deployment into scaled businesses with clearer profitability paths.

 

Sector-wise, real estate dominated PE/VC investments during the month, attracting $3.7 billion, far ahead of other sectors. Infrastructure followed with $531 million, while financial services drew $484 million. Together, these three sectors accounted for a commanding 84 per cent of total PE/VC investments in November.

 

Exit activity remained resilient, with 23 exits worth $3.2 billion recorded in November, slightly lower than the $3.7 billion logged in the same month last year. IPOs emerged as the preferred exit route, accounting for $1.5 billion across seven listings, reflecting improving public market conditions and growing appetite for well-priced offerings.

 

Fundraising momentum strengthens

 

Fundraising activity also gained traction, with PE and VC platforms raising $2.4 billion in November for future deployments. This was more than double the $1.1 billion raised a year ago and higher than the $1.8 billion mobilised in October, suggesting that fund managers are positioning for increased investment activity in 2026.  With inputs from PTI