PE/VC Investments in India reach US$11.7 billion across 369 deals in 3Q2025 : EY-IVCA Report

• Growth investments (US$4.1 billion) were the highest deal type in 3Q2025, followed by start-up investments (US$3.5 billion).
• PE/VC exits in 3Q2025 were at US$13.7 billion, a 61% increase y-o-y
• Financial services was the top sector in 3Q2025, recording US$3.1 billion

Mumbai, 18 October 2025: According to the EY-IVCA monthly PE/VC roundup, private equity and venture capital investments in India decreased by 5% in 3Q2025 compared to 2Q2025 in value terms.

Vivek Soni, Partner and National Leader, Private Equity Services, EY said, “3Q2025 recorded US$11.7 billion in PE/VC investments, 20% higher than investments in 3Q2024 (US$9.7 billion) and 5% lower than in 2Q2025 (US$12.2 billion). The number of deals in 3Q2025 was 11% higher year-on-year, totaling 369 deals versus 331 in 3Q2024.

Pure-play PE/VC investments in 3Q2025 (US$8.8 billion) rose 25% year-on-year from 3Q2024 (US$7 billion). The real estate and infrastructure asset class grew 6% year-on-year (US$2.9 billion in 3Q2025 versus US$2.7 billion in 3Q2024). Compared to 2Q2025, pure-play PE/VC investments increased 27% (US$7 billion in 2Q2025), while real estate and infrastructure investments fell 46% (US$5.3 billion in 2Q2025). In terms of deal count, pure-play deals rose 21% year-on-year, whereas real estate and infrastructure deals declined by 24%.

In 3Q2025, growth investment deals led at US$4.1 billion, followed by start-up investments at US$3.5 billion. By sector, financial services topped the chart with US$3.1 billion, followed by infrastructure at US$1.7 billion.

PE/VC exits in 3Q2025 totaled US$13.7 billion across 81 deals, 61% higher than 3Q2024 (US$8.5 billion). Strategic exits accounted for 63% of the total value exits by value (US$8.6 billion).

PE/VC activity has been volatile this year, recording a 9% year-on-year decline in year-to-date investments (US$38.4 billion YTD 2025 vs. US$42.1 billion in the same period of 2024). While certain months—February, April, June, July and September—saw year-on-year growth of 20%, 1%, 7%, 35%, and 30% respectively, overall activity was weighed down by muted performance in the remaining months. This uneven trend highlights the impact of multiple global headwinds, including geopolitical uncertainties.

The anticipated benefits of recent GST reforms amplified by the holiday season are expected to reflect in upcoming corporate earnings, potentially boosting market sentiment and hopefully reduce the bid-ask spread between seller expectations and buyer valuations. Progress on the US-India FTA in November could further enhance foreign investor confidence. We maintain a cautiously optimistic outlook and will look at FPI flows into the Indian markets as a leading confidence indicator.”

Investments

PE/VC investments in 3Q2025 rose 20% year-on-year to US$11.7 billion across 369 deals, compared to US$9.7 billion across 331 deals in 3Q2024, and were 5% lower than 2Q2025 (US$12.2 billion). Deal volume grew 11% year-on-year and 16% quarter-on-quarter (317 deals in 2Q2025).

3Q2025 recorded 27 large deals (valued over US$100 million), aggregating to US$6.8 billion—a 27% increase in value compared to 23 large deals totaling US$5.3 billion in 3Q2024, and 21% lower than 2Q2025 (US$8.5 billion across 28 deals).

Pure-play PE/VC investments (excluding real estate and infrastructure) reached US$8.8 billion, up 25% year-on-year (US$7 billion in 3Q2024) and 27% higher quarter-on-quarter (US$7 billion in 2Q2025), accounting for 76% of total investments. Real estate and infrastructure investments stood at US$2.9 billion, up 6% year-on-year (US$2.7 billion in 3Q2024). The largest deal was Oaktree’s US$1.1 billion credit investment in Megha Engineering and Infrastructures.

By sector, financial services led with US$3.1 billion, up 76% year-on-year (US$1.7 billion in 3Q2024). Infrastructure followed with US$1.7 billion, down 3% year-on-year, while technology ranked third with US$1.3 billion, up 1% year-on-year.

By deal type, growth investments led at US$4.1 billion across 80 deals, up 48% from 3Q2024 (US$2.7 billion across 49 deals). Start-up investments followed with US$3.5 billion across 204 deals, a 51% increase from US$2.3 billion across 159 deals.

Credit investments totaled US$2.4 billion across 31 deals, up 74% from US$1.4 billion across 69 deals. Buyouts fell 64% year-on-year to US$1 billion across 13 deals (US$2.7 billion across 13 deals in 3Q2024). PIPE investments reached US$665 million, up 24% year-on-year (US$538 million in 3Q2024).

Exits

3Q2025 recorded exits worth US$13.7 billion, 61% higher than in 3Q2024 (US$8.5 billion) and 172% higher than in 2Q2025 (US$5 billion). In terms of deal count, 3Q2025 saw 81 exits, up 4% from 78 in 3Q2024 and 31% from 62 in 2Q2025. Deal values were not available for 28 exits in 3Q2025. This quarter marked the third-highest quarterly exits on record and the highest since 2Q2021 (US$17.5 billion).

Strategic exits led with US$8.6 billion across 16 deals, accounting for 63% of total exit value in 3Q2025—a 372% year-on-year increase from US$1.8 billion across 17 deals in 3Q2024, and also 372% higher than 2Q2025 (US$1.8 billion across 18 exits).

Open market exits followed with US$3.1 billion across 26 deals, down 28% year-on-year from US$4.2 billion across 35 deals in 3Q2024. Secondary exits totaled US$1.7 billion across 22 deals, up 2% year-on-year from US$1.6 billion across 16 deals in 3Q2024.

3Q2025 also saw the highest-ever number of PE-backed IPOs, generating US$369 million across 16 exits, compared to nine IPOs in 3Q2024 (US$705 million) and four in 2Q2025 (US$152 million). Deal values were not available for 12 IPOs in 3Q2025.

The largest exit in 3Q2025 was Temasek’s sale of a 35% stake in Schneider Electric India Private Limited for US$6.4 billion.

By sector, industrial products recorded the highest exit value at US$6.4 billion across 14 exits, followed by financial services with US$2.2 billion across 14 deals.

Fundraise

Fundraises in 3Q2025 totaled US$4.2 billion across 35 funds, marking a 144% increase from 3Q2024 (US$1.7 billion across 29 funds) but a 34% decline from 2Q2025 (US$6.4 billion across 26 funds).

The largest fundraise in 3Q2025 was by Motilal Oswal Alternates, which raised US$800 million to invest approximately US$40 million to US$80 million in mid-market companies across diversified sectors.

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.