India PE/VC investments stay subdued at US$3.7 billion across 109 deals in February 2026: EY-IVCA Report

• Buyout investments (US$1.6 billion) emerged as the highest deal type in February 2026, followed by growth investments (US$874 million)
• PE/VC exits declined sharply to US$405 million, a 93% decrease y-o-y
• Technology was the top sector in March 2025, recording US$1.7 billion

Mumbai, 27 March 2025: According to the EY-IVCA monthly PE/VC roundup, private equity and venture capital investments in India decreased by 3% in February 2026 compared to January 2026 in value terms.

Vivek Soni, Partner and National Leader, Private Equity Services, EY India said, “February 2026 recorded US$3.7 billion in PE/VC investments, a 2% year‑on‑year increase (US$3.7 billion in February 2025) and a 3% month‑on‑month decrease (US$3.8 billion in January 2026). The number of deals increased to 109 in February 2026, a 5% year‑on‑year increase (104 deals in February 2025), but saw an 8% month‑on‑month decline (119 deals in January 2026).

Pure‑play PE/VC investments in February 2026 (US$3.1 billion) increased by 14% compared to February 2025 (US$2.8 billion). Investments in the real estate and infrastructure asset class decreased by 36% to US$573 million in February 2026 from US$893 million in February 2025. Compared to January 2026, pure‑play PE/VC investments were up by 14% from US$2.7 billion, while real estate and infrastructure investments declined by 48% from US$1.1 billion. In terms of the number of deals, pure‑play investments increased by 13% year‑on‑year, whereas real estate and infrastructure deal volume was down by 35% year‑on‑year.

In February 2026, buyout deals were the highest at US$1.6 billion, followed by growth investments at US$874 million. From a sector point of view, technology was the top sector in February 2026, recording US$1.7 billion in investments, followed by financial services (US$701 million).

PE/VC exits stood at US$405 million across 10 deals in February 2026, 93% lower than in February 2025 (US$6 billion). Exits through IPOs accounted for 56% of the total exit value (US$227 million).

PE/VC activity has been subdued during the first two months of 2026, with investments averaging US$3.8 billion—significantly lower than the annual average of US$5.1 billion in 2025 and the US$4.8 billion recorded during the first two months in the previous year. Heightened geopolitical tensions have led to increased uncertainty, dampening investor sentiment and near‑term deal flow. While a revival in momentum is likely as conditions stabilize, rising crude oil prices pose inflationary risks, making the next move by central banks and 1Q2026 earnings growth key variables to watch. Although the recent correction in Indian capital markets has reduced public market valuations, there is a lag for its transmission to the private markets. PE investors continue to remain cautious, preferring to go slow on deals and price in immediate risks where possible. With substantial amount of dry powder available and India’s macroeconomic fundamentals remaining strong, we expect PE/VC deal activity to pick up once geopolitical uncertainty clears out.”

Investments

PE/VC investments in February 2026 reached US$3.7 billion, marking a 2% year‑on‑year (y‑o‑y) increase from February 2025 (US$3.7 billion) and a 3% month‑on‑month (m‑o‑m) decline from January 2026 (US$3.8 billion). The number of deals also increased to 109 in February 2026, representing a 5% y‑o‑y increase from February 2025 (104 deals) and an 8% m‑o‑m decrease compared to January 2026 (119 deals).

February 2026 recorded nine large deals totaling US$2.6 billion, reflecting a 26% increase in value compared to February 2025 (US$2.1 billion) and an 11% increase compared to January 2026 (US$2.4 billion). Large deals accounted for 71% of overall PE/VC investments in February 2026. The largest deal of the month was Blackstone, TVS Capital, 360 ONE, etc., investing US$1.2 billion into Neysa Networks Private Limited.

Buyout investments accounted for the largest share of PE/VC activity in February 2026, with US$1.6 billion deployed, a 1% decrease in value compared to February 2025 (US$1.7 billion). Growth investments ranked second, with US$874 million invested—an increase of 187% from US$304 million in February 2025. Start‑up investments recorded US$816 million, 59% higher than the amount recorded in February 2025 (US$514 million). Credit investments reached US$308 million in February 2026 compared to US$602 million in February 2025. PIPE deals were the smallest segment at US$69 million, 88% lower than the value recorded in February 2025 (US$569 million).

From a sector perspective, technology led in February 2026 with US$1.7 billion, followed by financial services with US$701 million and infrastructure with US$387 million. Together, these sectors accounted for 75% of overall PE/VC investments in February 2026.

Exits

February 2026 recorded 10 exits worth US$405 million compared to US$6 billion across 17 exits in February 2025 and US$544 million across 12 exits in January 2026. (The deal values were not available for four of the 10 exits recorded in February 2026.)

Exits through IPO were the highest in February 2026, totaling US$227 million across two IPOs and accounting for 56% of total exit value.

The largest exits during the month included Apax, TPG and other investors selling an 11.5% stake in Fractal Analytics Limited during its IPO for US$196 million.

Fundraise

February 2026 recorded total fundraises of US$2.6 billion (across 14 fundraises), compared to US$1.2 billion in February 2025 and US$744 million in January 2026.

The largest fundraise of the month saw Peak XV raising US$1.3 billion across three new funds (India Seed, India Venture and APAC Funds) with a focus on investments in fintech, artificial intelligence (AI) and consumer segments.

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.