PE/VC Investments in India reach US$2.4 billion across 97 deals in May 2025: EY-IVCA Report

• Start-up investments were the highest deal type in May 2025, followed by growth investments
• PE/VC exits in May 2025 were at US$1 billion, with open market exits accounting for 77% of exits by value.
• Financial services was the top sector in May 2025, recording US$758 million

Mumbai, 23 June 2025: According to the EY-IVCA monthly PE/VC roundup, private equity and venture capital investments in India declined by 53% in May 2025 compared to April 2025 in value terms.

Vivek Soni, Partner and National Leader, Private Equity Services, EY said, “May 2025 recorded US$2.4 billion in PE/VC investments, 68% lower than investments in May 2024 and 53% lower than in April 2025. The number of deals in May 2025 was 24% lower year-on-year.

The pure-play PE/VC investments in May 2025 (US$1.9billion) declined by 60% compared to May 2024 (US$4.6 billion). The real estate and infrastructure asset class also declined by 82% (US$498 million in May 2025 vs. US$2.7 billion in May 2024). Compared to April 2025, pure-play PE/VC investments declined by 18% (US$2.3 billion in April 2025), and real estate and infrastructure investments declined by 82% (US$2.7 billion in April 2025). In terms of the number of deals, pure-play investments declined by 16%, whereas the real estate and infrastructure asset classes declined by 64% year-on-year.

In May 2025, start-up investment deals emerged as the highest at US$1.1 billion, followed by growth investments at US$0.7 billion. From a sector point of view, financial services was the top sector in  May 2025, recording US$758 million in investments, followed by real estate (US$380 million).

PE/VC exits stood at US$1 billion across 18 deals in May 2025, 60% lower than in May 2024 (US$2.6 billion). Open market exits accounted for 77% of the total exit value in May 2025 (US$797 million).

PE/VC activity continues to remain subdued, as reflected in the limited deal flow and reduction in large deals (deals above US$100 million). Heightened geopolitical tensions, US tariff policy and other external headwinds have dampened investor sentiment, resulting in a cautious and wait-and-watch approach. Further, the bid-ask spread between seller expectations and buyer valuations has not converged meaningfully as yet, dampening PE/VC investment activity. 

Domestically, early signs of positive momentum are emerging through robust GST collections, strengthening of Indian Rupee from the lows seen in the beginning of the year and the recent rate cut by the Reserve Bank of India which is expected to improve liquidity and provide further impetus to deal-making. We expect that these factors collectively are likely to drive a pickup in deal activity in the second half of the year if there is an easing of global uncertainties and geopolitical conflicts and convergence of the bid-ask spread between sellers and buyers valuation expectations. We remain cautiously optimistic.”

Investments

PE/VC investments in May 2025 totalled US$2.4 billion, 68% lower than the US$7.3 billion recorded in May 2024. This was also 53% lower than the US$5 billion recorded in April 2025. The number of deals in May 2025 declined by 24% year-on-year, with 97 deals compared to 128 in May 2024, and 16% compared to April 2025 (115 deals).

May 2025 saw six large deals totaling US$941 million, reflecting a 83% decline in value compared to May 2024 (US$5.6 billion) and a 75% decline compared to April 2025 (US$3.8 billion). Large deals accounted for 40% of overall PE/VC investments in May 2025. The largest deal of the month saw Ares and others investing US$216 million in Century Real Estate.

Start-up investments accounted for the largest share of PE/VC activity in May 2025, with US$1.1 billion deployed — a 21% increase in value over May 2024 (US$871 million). Growth investments ranked second, with US$710 million invested in May 2025, down 71% from US$2.5 billion in May 2024. Credit investments reached US$319 million, marking a 77% year-on-year decrease (US$1.4 billion in May 2024). Private investment in public equity (PIPE) investments totaled US$184 million, 38% lower than May 2024 (US$299 million). Buyout investments were the smallest segment at US$88 million, representing a 96% decline from US$2.3 billion in May 2024.

From a sector perspective, financial services led the way in May 2025 with US$758 billion across 21 deals, followed by real estate with US$380 million. Together, these two sectors accounted for 48% of overall PE/VC investments.

Exits

May 2025 recorded 18 exits worth US$1 billion, compared to US$2.6 billion across 24 exits in May 2024 and US$619 million across 16 exits in April 2025. (Deal values were not available for nine of the 18 exits recorded in May 2025.)

Open market exits were the highest in May 2025, totaling US$797 million across seven deals and accounting for 77% of total exit value.

The largest exit during the month was Carlyle’s sale of 10% stake in PNB Housing Finance for US$320 million.

Fundraise

May 2025 recorded total fundraises of US$3 billion, compared to US$608 million in May 2024 and US$1.1 billion in April 2025.

The largest fundraise was by Quadria Capital, which raised US$1.1 billion to build a diversified portfolio of approximately 10 market-leading companies, taking both significant minority and majority stakes.

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.