PE/VC Investments in India reach US$4 billion across 115 deals in July 2025: EY-IVCA Report

• Growth investments (US$2.0 billion) were the highest deal type in July 2025, followed by credit investments (US$792 million).
• PE/VC exits in July 2025 were at US$9.2 billion, a 267% increase y-o-y
• Financial services led sectoral activity in July 2025, recording US$1.8 billion

Mumbai, 26 August 2025: According to the EY-IVCA monthly PE/VC roundup, private equity and venture capital (PE/VC) investments in India decreased by 11% in July 2025 compared to June 2025 in value terms.

Vivek Soni, Partner and National Leader, Private Equity Services, EY India said, “July 2025 recorded US$4 billion in PE/VC investments, 32% higher than investments in July 2024 (US$3 billion) and 11% lower than in June 2025 (US$4.5 billion). The number of deals in July 2025 was 13% higher year-on-year. (115 deals in July 2025 versus 102 deals in July 2024).

Pure-play PE/VC investments in July 2025 (US$3.4 billion) increased by 77% compared to July 2024 (US$1.9 billion). The real estate and infrastructure asset class declined by 43% (US$648 million in July 2025 versus US$1.1 billion in June 2024). Compared to June 2025, pure-play PE/VC investments were up by 20% (US$2.8 billion), and real estate and infrastructure investments were down by 63% (US$1.7 billion). In terms of the number of deals, pure-play investments increased by 30%, whereas real estate and infrastructure deals declined by 48% year-on-year.

In July 2025, growth investment deals emerged as the highest at US$2 billion, followed by credit investments at US$792 million. From a sector point of view, financial services was the top sector in July 2025, recording US$1.8 billion in investments, followed by real estate (US$481 million).

PE/VC exits stood at US$9.2 billion across 26 deals in July 2025, 267% higher than in July 2024 (US$2.5 billion). Strategic exits accounted for 86% of the total exit value in July (US$7.9 billion).

PE/VC exits are primarily driven by the strength of the market, attractive valuations and liquidity opportunities through IPOs or M&A and are vital for capital rotation, Limited Partner (LP) returns, and General Partner (GP) fund-raising. The performance of the portfolio companies play a critical role in determining exit readiness, while fund lifecycle pressures and the need to return capital to LPs further shape the timing and strategy of exits. Please see our spotlight section for more details.

On the macro front, we continue to see mixed signals. The recent hike in US tariffs is expected to weigh on certain export-oriented sectors, and concerns over further announcements are prompting foreign investors to adopt a cautious stance. While start-up activity continues to rise gradually, exit momentum has softened amid ongoing valuation uncertainty. Conversely, the decline in crude oil prices from earlier highs offers a positive outlook for India. The upcoming GST reforms are likely to reinvigorate investment interest in consumption-driven sectors and stimulate economic activity. We remain cautiously optimistic.

Investments

PE/VC investments in July 2025 totaled US$4 billion, 32% higher than the US$3 billion recorded in July 2024. This was 11% lower than the US$4.5 billion recorded in June 2025. The number of deals in July 2025 increased by 13 % year-on-year, with 115 deals compared to 102 in July 2024, and 14% higher than June 2025 (101 deals).

July 2025 saw 10 large deals totaling US$2.8 billion, reflecting a 82% increase in value compared to July 2024 (US$1.5 billion) and a 19% decrease compared to June 2025 (US$3.4 billion). Large deals accounted for 69% of overall PE/VC investments in July 2025. The largest deal of the month was CVC Capital acquiring 49% stake in Aavas Financiers for US$949 million.

Growth investments accounted for the largest share of PE/VC activity in July 2025, with US$2.0 billion deployed - a 290% increase in value over July 2024 (US$518 million). Credit investments ranked second, with US$792 million invested in July 2025, up 66% from US$477 million in July 2024. Buyout investments reached US$511 million, 58% lower than investments recorded in July 2024 (US$1.2 billion in July 2024). Start-up investments totaled US$424 million, down 42% compared to July 2024 (US$729 million). Private investment in public equity (PIPE) investments was the smallest segment at US$284 million, but 167% higher than the value recorded in July 2024 (US$106 million).

From a sector perspective, financial services led in July 2025 with US$1.8 billion, followed by real estate with US$481 million and technology with US$472 million.

PE/VC exit trends

The increasing depth and maturity of India’s capital markets have created a supportive environment for exit activities and witnessed a significant upswing over the past few years. This is largely supported by buoyant performance of the capital markets.

Strong investor participation and favorable market conditions have enabled firms to capitalize on attractive exit opportunities across multiple sectors. This has not only enhanced liquidity but also delivered substantial returns to PE/VC investors, reinforcing confidence in India’s evolving investment ecosystem.

Taking a decadal view (since 2015), PE/VC exits worth US$203.7 billion across 2,456 deals were recorded. However, PE/VC exits surged during the last five years (since 2020) recording 68% of the exits worth US$139 billion across 1,395 deals.

In value terms, year 2021 recorded the highest exits worth US$39.6 billion wherein the PE/VC investors took advantage of buoyant capital markets, selling stakes in listed companies at elevated valuations. In terms of number of deals, year 2023 recorded the highest number (304 deals). After an all-time high exits in 2021, a 54% year-on-year decline in PE/VC exit values was observed in 2022. However, it rebounded in 2023, registering a 36% growth to reach US$24.9 billion, compared to US$18.3 billion in the previous year. This surge was primarily fueled by a substantial uptick in open market exits, which soared by 94% year-on-year to reach US$12.8 billion in 2023 from US$6.6 billion in 2022.

In terms of exit type distribution, open market exits dominated the last five years (since 2020) both in terms of value and number of deals (US$45.2 billion across 520 deals) and accounted for 33% of total exits in value terms. Strategic exits followed closely at US$42.6billion. Year 2025 has been one of the best for strategic exits so far, recording US$13.8 billion in exits. It may surpass the highest strategic exits recorded in 2021 (US$14 billion). Secondary exits and PE backed IPOs secured third and fourth rank, recording exits worth US$35.2 billion and US$13.7 billion, respectively. Lastly, exits through buyback stood at US$2.2 billion.

In terms of number of deals, open market exits recorded the highest number of exits (520) accounting for 37% of the overall exits. This was followed by strategic exits (438) and secondary exits (247). There were 155 exits through IPO and 35 through buyback. 

From a sector perspective, four sectors recorded exits of more than US$10 billion with technology sector dominating with exits worth US$29 billion. Financial services followed closely with exits totaling US$28.2 billion. Infrastructure ranked third with exits totaling US$16.3 billion and e-commerce recorded exits worth US$10.3 billion. These sectors cumulatively accounted for 60% of the overall exits since 2020. Other sectors that followed were healthcare (US$9.7 billion), industrial products (US$9.6 billion) and real estate (US$8.8 billion), pharmaceuticals (US$6.9 billion) etc.

Exits

July 2025 recorded 26 exits worth US$9.2 billion, compared to US$2.5 billion across 16 exits in July 2024 and US$3.4 billion across 26 exits in June 2025. Please note that deal values were not available for 11 of the 26 exits recorded in July 2025.

Strategic exits were the highest in July 2025, totaling US$7.9 billion across seven deals and accounting for 86% of total exit value.

The largest exit during the month was Temasek, which sold 35% stake in Schneider Electric India Private Limited for US$6.4 billion.

Fundraise

July 2025 recorded total fundraises of US$1.2 billion, compared to US$434 million in July 2024 and US$2.3 billion in June 2025.

US$400 million raised by Z47 leveraging the portfolio of tech start-ups is the largest fundraise of the month.

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.