PE/VC Investments in India reach US$2.8 billion across 115 deals in August 2025: EY-IVCA Report

• Start-up investments (US$1.5 billion) were the highest deal type in August 2025, followed by growth investments (US$901 million).
• PE/VC exits in August 2025 were at US$1.9 billion, a 30% decrease y-o-y
• Financial services was the top sector in August 2025, recording US$783 million

Mumbai, 29 September 2025: According to the EY-IVCA monthly PE/VC roundup, private equity and venture capital investments in India decreased by 31% in August 2025 compared to July 2025 in value terms.

Vivek Soni, Partner and National Leader, Private Equity Services, EY India said, “August 2025 recorded US$2.8 billion in PE/VC investments, 8% lower than investments in August 2024 (US$3.1 billion) and 31% lower than in July 2025 (US$4.1 billion). The number of deals in August 2025 was 10% higher year-on-year. (August 2025 recorded 115 deals versus 105 deals in August 2024.)

Pure-play PE/VC investments in August 2025 (US$2.2 billion) increased by 6% compared to August 2024 (US$2.1 billion). The real estate and infrastructure asset class declined by 38% (US$599 million in August 2025 versus US$974 million in August 2024). Compared to July 2025, pure-play PE/VC investments were down by 36% (US$3.5 billion), and real estate and infrastructure investments were down by 8% (US$648 million). In terms of the number of deals, pure-play investments increased by 17%, whereas real estate and infrastructure deals declined by 18% year-on-year.

In August 2025, start-up investment deals emerged as the highest at US$1.5 billion, followed by growth investments at US$901 million. From a sector point of view, financial services was the top sector in August 2025, recording US$783 million in investments, followed by automotive (US$426 million).

PE/VC exits stood at US$1.9 billion across 17 deals in August 2025, 30% lower than in August 2024 (US$2.8 billion). Open market exits accounted for 85% of the total exit value in August (US$1.7 billion).

Over the past few years, PE/VC-backed IPOs have grown strongly, supported by buoyant capital markets, higher valuation multiples in mid- and small-cap companies, and strong investor demand for high-growth businesses. The deepening of Indian markets has enabled PE/VC funds to secure efficient and smooth exits at good valuations. Please see our spotlight section for more details.

The sentiment among PE/VC investors continues to be cautious. On one hand, global headwinds such as geopolitical uncertainties, shifting trade tariff and immigration policies, and the continued rupee depreciation have dampened confidence. On the other hand, domestic indicators remain encouraging—robust GST collections, growth in advance direct tax collections, a strong pipeline of IPOs, and resilient consumption demand continue to reflect the underlying strength of the Indian economy keeping seller expectations high. Moreover, the recent reduction in GST rates is expected to boost household disposable income, further supporting a consumption-driven growth cycle that could provide a green flag to investors. Looking ahead, US tariff and immigration policy updates, Federal Reserve rate cuts and domestic quarterly corporate earnings are the three main factors that will collectively shape investor sentiment.  As of now, the bid/ask spread between sellers and buyers remains high impacting investment activity. We remain cautiously optimistic on the short-term outlook for Indian PE/VC investment and exit activity.”

Investments

PE/VC investments in August 2025 totaled US$2.8 billion, 8% lower than the US$3.1 billion recorded in August 2024. This was 31% lower than the US$4.1 billion recorded in July 2025. The number of deals in August 2025 increased by 10% year-on-year, with 115 deals compared to 105 in August 2024, and 2% lower than July 2025 (117 deals).

August 2025 saw six large deals totaling US$1.1 billion, reflecting a 33% decrease in value compared to August 2024 (US$1.7 billion) and a 59% decrease compared to July 2025 (US$2.8 billion). Large deals accounted for 41% of overall PE/VC investments in August 2025. The largest deal of the month was Green Climate Fund and others investing US$405 million In Muon India (Vertelo).

Start-up investments accounted for the largest share of PE/VC activity in August 2025, with US$1.5 billion deployed - a 121% increase in value over August 2024 (US$695 million). Growth investments ranked second, with US$901 million invested in August 2025, but down 41% from US$1.5 billion in August 2024. PIPE investments reached US$160 million, 26% lower than investments recorded in August 2024 (US$215 million). Credit investments totaled US$141 million, down 47% compared to August 2024 (US$266 million). Buyout investments were the smallest segment at US$85 million, 77% lower than the value recorded in August 2024 (US$367 million).

From a sector perspective, financial services led in August 2025 with US$783 million, followed by automotive with US$426 million and real estate with US$360 million. These sectors cumulatively accounted for 56% of overall PE/VC investments in August 2025.

PE/VC-backed IPOs:

The trend of PE/VC-backed IPOs in India has accelerated in recent years, underscoring the increasing maturity and depth of the country’s capital markets. Public listings are emerging as a preferred exit route for investors, as they often provide higher valuations and liquidity compared to private transactions.

This shift reflects growing investor confidence in India’s market ecosystem and highlights how IPOs can unlock significant value—particularly for early-stage investors who supported companies through their formative growth phases, enabling them to realize significant returns while also enhancing the credibility and visibility of the portfolio companies in the broader market.

The landscape of PE/VC-backed IPOs has experienced dynamic shifts over the past few years. The year 2021 was pivotal; it recorded the highest ever number of PE/VC-backed IPOs, which resulted in exits at rich valuations for early PE/VC investors (US$5.2 billion across 44 IPOs). However, the trajectory of PE/VC-backed IPOs saw a decline in 2022 on account of sharp corrections in global equity markets amid rising inflation, interest rate hikes and geo-political conflicts. Years 2023 and 2024 experienced a resurgence of sorts in India and 2024 saw the second highest number of PE-backed IPOs (41 IPOs) as the buoyant Indian markets, backed by a stable economy, controlled inflation etc., seemed to perform better.

Over the last five years (since 2020), PE/VC-backed IPO exits have realized US$13.9 billion for PE/VC investors across 158 IPOs. In terms of sectors, financial services recorded the highest number of PE/VC backed IPOs, both in terms of value and volume, followed by e-commerce. Technology secured the third rank, while healthcare and automotive secured fourth and fifth rank, respectively. These sectors collectively accounted for 70% of total PE-backed IPOs by value since 2020.

PE/VC-backed IPOs in India now constitute a substantial portion of the overall IPO market quarter on quarter, reflecting the positive evolution of the country’s capital markets.  With a robust economy, and favorable demographics, India continues to attract attention from private equity investors seeking growth opportunities. As the Indian capital markets continue to evolve and mature, the trend of PE/VC-backed IPOs is expected to remain a prominent feature as these PE backed companies look to list and attract risk capital from another set of investors.

Exits

August 2025 recorded 17 exits worth US$1.9 billion, compared to US$2.8 billion across 29 exits in August 2024 and US$9.2 billion across 26 exits in July 2025. (The deal values were not available for three of the 17 exits recorded in August 2025.)

Open market exits were the highest in August 2025, totaling US$1.7 billion across nine deals and accounting for 85 % of total exit value.

The largest exit during the month was Antfin Singapore Holding selling 1.9% stake in Eternal Limited (Zomato) for US$612 million.

Fundraise

August 2025 recorded total fundraises of US$1.1 billion, compared to US$828 million in August 2024 and US$1.4 billion in July 2025.

The largest fundraise of the month was Motilal Oswal raising US$800 million to growth capital for mid-market companies across consumer, financial services, life sciences and manufacturing. 

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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.