PE/VC Investments in India reach US$13.7 billion across 284 deals in 1Q2025: EY-IVCA Report

• Buyout investments were the highest deal type in 1Q2025, followed by growth investments
• PE/VC exits in 1Q2205 were at US$8 billion, a 57% increase y-o-y
• Technology was the top sector in 1Q2025, recording US$3.1 billion
• Healthcare sector in India recorded US$14.5 billion in PE/VC investments since 2020

Mumbai, 21 April 2025: According to the IVCA-EY monthly PE/VC roundup, PE/VC investments in 1Q2025 were 2% lower than 4Q2024 in value terms.

Vivek Soni, Partner and National Leader, Private Equity Services, EY said, “1Q2025 recorded US$13.7 billion in PE/VC investments, 14% lower than investments in 1Q2024 and 2% lower than in 4Q2024. The number of deals in 1Q2025 was 20% lower year-on-year.

The pure-play PE/VC investments in 1Q2025 (US$10.9 billion) increased by 62% compared to 1Q2024 (US$6.7 billion). The real estate and infrastructure asset class saw a decline of 69% year-on-year (US$2.8 billion in 1Q2025 versus US$9.2 billion in 1Q2024). Compared to 4Q2024, pure-play PE/VC investments grew by 19% (US$9.1 billion in 4Q2024), and real estate and infrastructure investments declined by 42% (US$4.9 billion in 4Q2024). In terms of the number of deals, pure-play and real estate and infrastructure asset classes both declined, by 6% and 67% year-on-year, respectively.

In 1Q2025, buyout investment deals emerged as the highest at US$5.2 billion, followed by growth investments at US$3.1 billion. From a sector point of view, technology was the top sector in 1Q2025, recording US$3.1 billion, followed by infrastructure (US$2.3 billion).

PE/VC exits were recorded at US$8 billion across 39 deals in 1Q2025, 57% higher than in 1Q2024 (US$5.1 billion). Strategic exits in 1Q2025 accounted for 51% of all exits by value (US$4.1 billion).

The COVID-19 pandemic significantly changed perceptions of healthcare needs, driving growing demand for clinics and medical devices. As people adopted more health-conscious lifestyles and appetite for wellness increased, the shift attracted PE/VC investors. These investors are particularly interested in the start-up space, seeking innovative healthcare solutions. Please see our spotlight section for more details on PE/VC activity in the healthcare sector.

While a few large deals helped sustain the PE/VC investment value in 1Q2025, overall investor sentiment remains cautious on account of several macroeconomic and geopolitical factors, including policies being implemented by the current US administration, decisions on tariff, interest rate changes by central banks, and declining capital market valuations. As private market valuations have yet to correct meaningfully, PE/VC investors are in no rush to close deals and are rightfully monitoring evolving conditions to ensure that macro and micro risks are adequately priced in. The upcoming cycle of quarterly corporate earning announcements will set the tone for the short-term outlook for India Inc. performance.  On the public markets side, as projected - the volatility in the mid-cap and small-cap space has ensured the closure of the IPO window for most players, which is a dampener for PE/VC exits. This along with reluctance of PE investors to engage at current valuations can be a tailwind for the Private Credit asset class - we project a positive outlook for Private Credit in calendar year 2025.

Investments

PE/VC investments in 1Q2025 were 14% lower than in 1Q2024 and 2% lower than in 4Q2024 (US$13.7 billion in 1Q2025 versus US$15.9 billion in 1Q2024 and US$14 billion in 4Q2024). In terms of deal volume,1Q2025 recorded a 20% decline compared to 1Q2024 and a 11% decline compared to 4Q2024 (284 deals in 1Q2025 versus 355 deals in 1Q2024 and 319 deals in 4Q2024).

1Q2025 saw a decline in large deals, with 32 deals totalling US$10.4 billion compared to 34 large deals worth US$11 billion in 1Q2024 and 34 large deals in 4Q2024 valued at US$10.1 billion. These large deals accounted for 76% of overall PE/VC investments in 1Q2025. Notable among them were New Mountain Capital’s acquisition of Access Healthcare services for US$1.5 billion and Temasek's purchase of a 10% stake in Haldiram Snacks Food Private Limited for US$936 million.

Pure-play PE/VC investments reached US$10.9 billion, 62% higher than the value recorded in 1Q2024 (US$6.7 billion) and 19% higher than US$9.1 billion recorded in 4Q2024. Pure-play PE/VC investments accounted for 79% of all PE/VC investments in 1Q2025, compared to 42% in 1Q2024. In terms of the number of deals, pure-play investments saw a decline of 6% and 1% compared to 1Q2024 and 4Q2024, respectively, (257 deals in 1Q2025 vs. 273 deals in 1Q2024 and 260 deals in 4Q2024). Investments in infrastructure and real estate asset class in 1Q2025 (US$2.8 billion) declined 69% year-on-year (US$9.2 billion) and 42% compared to 4Q2024 (US$4.9 billion).

Trends by investment type:

• Buyouts: This was the highest investment type in 1Q2025, recording US$5.2 billion across 20 deals, a 22% growth both year-over-year and quarter-over-quarter (US$4.3 billion in 1Q2024 and 4Q2024).
• Growth investments: The second-highest investment strategy at US$3.1 billion across 53 deals, with 11% year-on-year decline (US$3.5 billion in 1Q2024) and 3% quarter-on-quarter growth (US$3 billion in 4Q2024).
• Start-up Investments: Recorded US$2.7 billion across 167 deals, a 66% growth compared to US$1.6 billion recorded in 1Q2024 and 4% decline compared to 4Q2024 (US$2.8 billion).
• PIPE investments: Declined by 42% compared to 1Q2024, however grew by 45% compared to 4Q2024 (US$1.5 billion in 1Q2025 versus US$2.7 billion in 1Q2024 and US$1.1 billion in 4Q2024).
• Credit investments: Reached US$1.1 billion across 27 deals, with 71% year-on-year and 61% quarter-on-quarter decline.

Sectoral trends

• Technology: The technology sector dominated the first quarter of 2025, witnessing US$3.1 billion invested across 41 deals, a 265% rise in value compared to US$838 million recorded in 1Q2024.
• Infrastructure: The infrastructure sector was the second largest, reaching US$2.3 billion across 13 deals, but a decline of 67% year-on-year (US$7.1 billion in 1Q2024).
• Financial services: The sector reached US$1.6 billion across 43 deals and grew by 7% in value compared to US$1.5 billion recorded in 1Q2024.
• Food and agriculture: Investment in food and agriculture grew 142% reaching US$1.2 billion in 1Q2025 compared to US$477 million recorded in 1Q2024. 

Healthcare Sector in India: PE/VC Investments and Exits

Since 2020, the healthcare sector in India has recorded US$14.5 billion in PE/VC investments, with 58% of the investments coming in 2023 and 2024.

The majority of investment growth has been driven by hospitals and clinics, which accounted for 60% of healthcare investments, followed by healthcare technology. Most investments were in growth and buyout funding, while the healthcare technology startup space saw US$1.9 billion invested across 143 deals.

Given that hospitals are capital-intensive,, requiring significant upfront investment, the sector is highly attractive for PE/VC investors. Most PE/VC investments are focused on creating capacity and generating operating leverage through the levers of value creation, which in turn leads to healthy return multiples on exit. This playbook seems highly efficient, as reflected in the exit figures.

There is renewed interest in healthcare technology, which is empowering patients to manage their health, improving clinical decision-making through real-time analytics, and enabling anywhere, anytime care with virtual monitoring tools. This shift is also attracting growing interest from PE/VC investors in tech-enabled start-ups.

Since 2020, the healthcare sector has recorded US$8.8 billion in exits, with 76% from the hospital and clinics segment. Hospitals and clinics also led in deal volume, accounting for 55% of all deals.

The growing demand for good quality healthcare and increased awareness of the sector is providing ample growth opportunities in the under-penetrated Indian market for PE/VC investors.

Healthcare is a fundamental need, and its demand remains strong regardless of economic downturns. This makes healthcare companies, especially those providing essential services such as hospitals, medical devices, etc., more attractive to investors seeking stability. Moreover, the sector is less susceptible to fluctuations in consumer spending due to the essential nature of medical treatment and medications.

The COVID-19 pandemic has significantly changed the perception of healthcare needs, driving growth in demand for clinics and medical devices. As people adopt more health-conscious lifestyles and become increasingly aware of wellness, this shift has attracted PE/VC investors, particularly in the start-up space, to those seeking to develop innovative healthcare solutions. We expect this momentum to continue and grow in the coming years.

Exits

Exits in 1Q2025 totalled US$8 billion, a 57% increase compared to US$5.1 billion in 1Q2024 but 4% lower than US$8.3 billion recorded in 4Q2024. Deal volume dropped by 51%, with 39 deals compared to 80 in 1Q2024 and a 13% decrease from 45 deals in 4Q2024

Strategic exits led the quarter, totalling US$4.1 billion across 24 deals, a 785% year-on-year growth from US$460 million across 13 deals in 1Q2024. PE-backed IPOs ranked second, generating US$1.4 billion from four IPOs, a 407% increase in value compared to US$271 million from 11 IPOs in 1Q2024. Open market exits recorded US$1.3 billion across five deals, declining by 69% year-on-year from US$4.3 billion across 46 deals in 1Q2024. Secondary exits stood at US$1.2 billion across six exits, compared to US$59 million across 10 deals in 1Q2024.

The infrastructure sector recorded the highest value of exits, reaching US$3.8 billion across four deals in 1Q2025, followed by technology with US$1.1 billion across eight deals, while the telecommunication sector recorded US$1 billion from a single deal. These three sectors cumulatively accounted for 74% of overall exits in value.

The largest deal of 1Q2025 saw NIIF and BII selling Ayana Renewable Power to ONGC – NTPC Green for US$2.3 billion.

Fundraise

In 1Q2025, fundraising grew by 32% with US$3.7 billion raised across 29 funds, compared to US$2.8 billion raised across 21 funds in 1Q2024.This marks a 178% growth compared to US$1.3 billion raised across 17 funds in 4Q2024.

The largest fundraise of the quarter came from Accel, which securedUS$650 million to support early-stage start-ups in India and Southeast Asia.

Notes to Editors

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About IVCA

The Indian Private Equity & Venture Capital Association (IVCA) is the apex body promoting the Alternative Investment Funds (AIFs) in India and promotes stable, long-term capital flow (Private Equity (PE), Venture Capital (VC) and Angel Capital) in India.

With leading VC/ PE firms, institutional investors, banks, corporate advisers, accountants, lawyers, and other service providers as members, it serves as a powerful platform for all stakeholders to interact with each other. Being the face of the industry, it helps establish high standards of governance, ethics, business conduct and professional competence. With a prime motive to support the ecosystem, it facilitates contact with policy makers, research institutions, universities, trade associations and other relevant organizations. Thus, support entrepreneurial activity, innovation, and job creation.