PE/VC Investments in India reach US$5.3 billion across 102 deals in October 2025 : EY-IVCA Report

• PIPE investments surged nearly 10x y-o-y to US$2.1 billion, emerging as the largest deal type
• PE/VC exits in October 2025 were at US$640 million, a 43% decrease y-o-y
• Financial services led sector activity, recording US$2.9 billion

Mumbai, 28 November 2025: According to the EY-IVCA monthly PE/VC roundup, private equity and venture capital investments in India increased by 9% in October 2025 compared to September 2025 in value terms.

Vivek Soni, Partner and National Leader, Private Equity Services, EY India said, “October 2025 recorded US$5.3 billion in PE/VC investments, a 9% increase year-on-year (US$4.9 billion in October 2024) and month-on-month (US$4.9 billion in September 2025). The number of deals decreased to 102 in October 2025, a 9% drop year-on-year (112 deals in October 2024) and a 30% decline month-on-month (145 deals in September 2025).

Pure-play PE/VC investments in October 2025 (US$5 billion-highest in past 13 months) increased by 81% compared to October 2024 (US$2.8 billion). The real estate and infrastructure asset class declined by 86% (US$291 million in October 2025 versus US$2.1 billion in October 2024). Compared to September 2025, pure-play PE/VC investments were up by 57% (US$3.2 billion) and real estate and infrastructure investments were down by 83% (US$1.7 billion). In terms of the number of deals, pure-play investments increased by 1% whereas real estate and infrastructure deals declined by 41% year-on-year.

In October 2025, PIPE deals were the highest at US$2.1 billion, followed by start-up investments at US$2 billion. From a sector point of view, financial services was the top sector in October 2025, recording US$2.9 billion in investments, followed by e-commerce (US$715 million).

PE/VC exits stood at US$640 million across 14 deals in October 2025, 43% lower than in October 2024 (US$1.1 billion). Public exits (open market + IPO) accounted for 73% of the total exit value (US$467 million).

The industrial sector is expected to witness strong demand in the coming years, supported by large-scale infrastructure development and government-led capital expenditure programs. Additionally, the ongoing energy transition toward renewables, coupled with a robust demand for defense and automotive products is expected to play a pivotal role in driving growth across industrial products. Please see our spotlight section for more details.

The PE/VC landscape in India is set for an active phase, shaped by a series of key macro and micro developments. Q2 earnings highlighted a mixed corporate outlook—banking, IT and FMCG remained resilient while commodities and manufacturing faced margin and demand pressures. The Bihar election results and potential shifts in US trade policies under the Trump administration could positively impact capital flows and investor sentiment. Domestically, GST collections remain robust and the decline in the October Consumer Price Index provides the Reserve Bank of India with elbow room for potential rate cuts—an outcome that could accelerate capex spending and consumption-led growth. With the capital market valuations remaining buoyant and the appetite for IPO’s remaining strong, valuations continue to challenge private deal-making. A favourable US-India FTA could potentially provide the trigger for sentiment change – we remain cautiously optimistic.”

Investments

PE/VC investments in October 2025 reached US$5.3 billion, marking a 9% increase year-on-year (y-o-y) from October 2024 (US$4.9 billion) and month on month (m-o-m) from September 2025 (US$4.9 billion). However, the number of deals decreased to 102 in October 2025, representing a 9% y-o-y drop from October 2024 (112 deals) and a 30% m-o-m decline compared to September 2025 (145 deals).

October 2025 recorded nine large deals totaling US$3.7 billion, reflecting a 12% increase in value compared to October 2024 (US$3.3 billion) and a 29% increase compared to September 2025 (US$2.9 billion). Large deals accounted for 70% of overall PE/VC investments in October 2025. The largest deal of the month was International Holding Company acquiring 43.46% of Sammaan Capital for US$1 billion.

Private investments in public equity (PIPE) accounted for the largest share of PE/VC activity in October 2025, with US$2.1 billion deployed, a 981% increase in value over October 2024 (US$195 million). Start-up investments ranked second, with US$2 billion invested in October 2025, an increase of 175% from US$884 million in October 2024. Growth investments recorded US$810 million, 50% lower than the amount recorded in October 2024 (US$1.6 billion). Buyouts remained almost the same at US$227 million in October 2025 compared to US$227 million in October 2024. Credit deals were the smallest segment at US$189 million, 90% lower than the value recorded in October 2024 (US$2 billion).

From a sector perspective, financial services led in October 2025 with US$2.9 billion, followed by e-commerce with US$715 million and technology with US$455 million. These sectors together accounted for 77% of overall PE/VC investments in October 2025.

PE/VC trends in the industrial sector

Since 2015, the industrial sector has recorded US$10.4 billion in PE/VC investments across 256 deals. Of this, 71%—amounting to US$7.5 billion across 183 deals—has come in the past five years (2020-2025).

The sector saw its highest-ever annual investment in 2023 with US$2.6 billion deployed, marking a 321% year-on-year increase. This spike was driven by US$1.5 billion investment in Gemstar Infra (Smart Meters JV) by GIC and a US$662 million investment in Adani Enterprises by GQG Partners.

Buyout investments have been the most preferred strategy in the sector, accounting for 54% of total investments since 2020 (US$4 billion). GIC’s acquisition of Gemstar Infra (Smart Meters JV), PAG’s acquisition of Manjushree Technopack (US$1 billion) and Blackstone’s acquisition of Piramal Glass (US$1 billion) are some of the key deals in this strategy.

Among categories, power and electrical equipment led with US$2 billion across 34 deals, representing 27% of overall PE/VC investments, followed by paper and packaging (US$1.9 billion).  Interest in semiconductors has accelerated recently due to strong demand and government incentives.

Since 2020, the industrial sector has recorded US$9.6 billion across 70 exits. Strategic exits contributed 69% of this value, amounting to US$6.7 billion, driven by Temasek’s exit from Schneider Electric India for US$6.4 billion (acquired by Schneider Electric SE) in 2025.

Over the years, the Indian industrial sector has evolved significantly owing to the manufacturing push under ‘Make in India’ and expansion across the electronics, defense and automotive sectors. Expanding manufacturing activity, large-scale infrastructure development and rising capex are helping scale demand for industrial products in India.

Additionally, emerging sectors such as renewable energy, EVs and data centers, complemented by increased urbanization and expansion in real estate, are making this sector more attractive for PE/VC investors.

Exits

October 2025 recorded 14 exits worth US$640 million compared to US$1.1 billion across 10 exits in October 2024 and US$2.6 billion across 39 exits in September 2025. (The deal values were not available for four of the 14 exits recorded in October 2025.)

Open market exits were the highest in October 2025, totaling US$234 million across three deals and accounting for 37% of total exit value.

The largest exit during the month was Advent selling a 2% stake in Aditya Birla Capital for US$186 million.

Fundraise

October 2025 recorded total fundraises of US$1.8 billion compared to US$209 million in October 2024 and US$2.1 billion in September 2025.

The largest fundraise of the month was US$1 billion raised by HSBC to fund short-term working capital and term loans to early and late-stage growth start-ups.

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.