Indian PE/VC investment activity moderates to US$13.1 billion across 360 Deals in 1Q2026: EY-IVCA Report

• Buyout investments (US$4.3 billion) were the highest deal type followed by growth investments (US$4.1 billion).
• PE/VC exits in 1Q2026 were at US$4.2 billion, a 48% decrease y-o-y.
• Technology was the top sector recording US$2.2 billion, followed by financial services (US$2 billion).

Mumbai, 30 April 2026: According to the EY-IVCA monthly PE/VC roundup, private equity and venture capital investments in India decreased by 24% in 1Q2026 compared to 4Q2025 in value terms.

Vivek Soni, Partner and National Leader, Private Equity Services, EY India said, “1Q2026 recorded US$13.1 billion in PE/VC investments, a 19% year‑on‑year decrease (US$16.2 billion in 1Q2025) and a 24% quarter‑on‑quarter decrease (US$17.3 billion in 4Q2025). The number of deals also decreased to 360 in 1Q2026, a 2% year‑on‑year decrease (366 deals in 1Q2025), but saw a 1% month‑on‑month increase (358 deals in 4Q2025).

Pure‑play PE/VC investments in 1Q2026 (US$9.7 billion) declined by 21% compared to 1Q2025 (US$12.3 billion). Investments in the real estate and infrastructure asset class decreased by 11% to US$3.4 billion in 1Q2026 from US$3.9 billion in 1Q2025. Compared to 4Q2025, pure‑play PE/VC investments were down by 7% from US$10.4 billion, while real estate and infrastructure investments declined by 51% from US$6.9 billion. In terms of the number of deals, pure‑play investments increased by 7% year‑on‑year, whereas real estate and infrastructure deal volume was down by 39% year‑on‑year.

In 1Q2026, buyout deals were the highest at US$4.3 billion, followed by growth investments at US$4.1 billion. From a sector point of view, technology was the top sector in 1Q2026, recording US$2.2 billion in investments, followed by financial services (US$2 billion).

PE/VC exits stood at US$4.2 billion across 38 deals in 1Q2026, 48% lower than in 1Q2025 (US$8.1 billion). Strategic exits accounted for 42% of the total exit value (US$1.7 billion).

PE/VC investors are drawn to the pharmaceutical and medical devices sector for its resilient demand and steady long‑term growth. We believe that innovation, rising healthcare spends and scalable opportunities will drive future demand from PE/VC investors for the sector. Please see our spotlight section for more details.

Global sentiments continue to weigh on PE/VC activity, with heightened geopolitical tensions and persistently high crude oil prices creating an environment of caution. While domestic institutional investors have provided resilience to Indian capital markets, sustained depreciation of the rupee against the dollar has triggered intermittent foreign outflows, dampening sentiment. India’s underlying macroeconomic fundamentals remain robust, but the upcoming annual earnings season and inflation data will be key determinants of market direction. PE/VC deal activity is expected to pick up momentum after global uncertainties ease, currency volatility stabilizes, and valuations become more attractive. We remain cautiously optimistic.”

Investments

PE/VC investments in 1Q2026 reached US$13.1billion, marking a 19% year‑on‑year (y‑o‑y) decrease from 1Q2025 (US$16.2 billion) and a 24% quarter‑on‑quarter (q‑o‑q) decline from 4Q2025 (US$17.3 billion). The number of deals also decreased to 360 in 1Q2026, representing a 2% y‑o‑y decline from 1Q2025 (366 deals) and a 1% q‑o‑q increase compared to 4Q2025 (358 deals).

1Q2026 recorded 27 large deals totaling US$8.7 billion, reflecting a 26% decrease in value compared to 1Q2025 (US$11.7 billion across 38 large deals) and a 27% decrease compared to 4Q2025 (US$11.8 billion across 32 large deals). Large deals accounted for 66% of overall PE/VC investments in 1Q2026. The largest deal of the month was Blackstone, Bolt Ventures and others investing US$1.8 billion into Royal Challengers Sports (Royal Challengers Bengaluru).

By deal type, buyout investments accounted for the largest share of PE/VC activity in 1Q2026, with US$4.3 billion deployed, an 18% decrease in value compared to 1Q2025 (US$5.2 billion). Growth investments ranked second, with US$4.1 billion invested—an increase of 2% from US$4 billion in 1Q2025. Start‑up investments recorded US$3.2 billion, 13% higher than the amount recorded in 1Q2025 (US$2.8 billion). Credit investments reached US$1.3 billion in 1Q2026 compared to US$2.8 billion in 1Q2025. PIPE deals were the smallest segment at US$244 million, 82% lower than the value recorded in 1Q2025 (US$1.4 billion).

From a sector perspective, technology led in 1Q2026 with US$2.2 billion, followed by financial services with US$2.0 billion and real estate with US$1.9 billion. Together, these sectors accounted for 47% of overall PE/VC investments in 1Q2026.

PE/VC trends in the pharmaceutical and medical devices sector:

Over the past decade, PE/VC investments in the pharmaceutical and medical devices sector have been on an upward trajectory. Since 2016, thesector has attracted US$16.4 billion across 303 deals in PE/VC investments, of which 62% has been recorded in the last five years (since 2021) i.e., US$10.2 billion across 201 deals.

The disruption caused by the COVID‑19 pandemic brought heightened investor focus to the pharmaceutical and medical devices sector. As a result, 2020 emerged as the peak investment year, recording the highest PE/VC inflows of US$3.4 billion. This momentum continued in the subsequent years, with strong investment levels in 2021 at US$2.4 billion and in 2022 at US$2.5 billion, underscoring sustained investor confidence in the sector.

PE/VC activity was primarily concentrated in the formulations segment, which accounted for 35% of total investments, amounting to US$3.5 billion across 55 deals. This was followed by medical devices, which represented 24% of overall investments at US$2.4 billion across 54 deals. The growing focus on medical devices has been driven by global demographic shifts, including an aging population and the rising prevalence of chronic diseases, which have significantly increased demand for medical technologies in recent years.

While the early years were largely driven by growth‑stage investments, buyout activity emerged as the dominant investment theme over the period, accounting for 42% of total PE/VC investments (US$4.3 billion). With the exception of 2025, each year since 2021 consistently recorded four buyout transactions. There has been a material shift towards larger deal sizes. The sector recorded 32 large deals valued at accounting for 72% of overall investments in this sector, valued at US$7.3 billion.

The upward trend observed in PE/VC investments was also mirrored in exit activity. The sector recorded total exits worth US$8.8 billion across 66 transactions. Notably, both 2024 and 2025 witnessed exits exceeding US$3 billion each, demonstrating strong exit momentum.

The COVID‑19 pandemic reshaped perceptions, accelerating demand and reinforcing the sector’s non‑cyclical nature. Greater awareness of health and wellness, aging populations and rising chronic diseases have increased healthcare consumption. In India, strong government initiatives such as Ayushman Bharat and PM‑JAY have further improved access and infrastructure, creating a favorable backdrop for private capital. Further, the sector provides clear exit routes via IPOs, secondary and strategic transactions, positioning it as a sustained driver of future PE/VC interest.

Exits

1Q2026 recorded exits worth US$4.2 billion, 48% lower than in 1Q2025 (US$8.1 billion) and 31% lower than in 4Q2025 (US$6.1 billion). In terms of deal count, 1Q2026 saw 38 exits, down 12% from 43 in 1Q2025 and 45% from 69 in 4Q2025. Deal values were not available for 13 exits in 1Q2026.

Strategic exits led with US$1.7 billion across 11 deals, accounting for 42% of total exit value in 1Q2026—a 59% year-on-year decrease from US$4.2 billion across 27 deals in 1Q2025, and 32% higher than 4Q2025 (US$1.3 billion across 21 exits). Open market exits followed with US$1.3 billion across 10 deals, down 1% year-on-year from US$1.3 billion across five deals in 1Q2025. Exits through IPO totaled US$637 million across six IPOs, down by 54% year-on-year from US$1.4 billion across four deals in 1Q2025. Secondary exits reached US$508 million across 11 exits, a 58% decrease y-o-y (US$1.2 billion across seven exits in 1Q2025).

The largest exit in 1Q2026 was Macquarie selling its toll road portfolio to Vici for US$1.6 billion.

By sector, infrastructure recorded the highest exit value at US$1.8 billion across three exits, followed by retail and consumer products (US$840 million) and real estate (US$516 million).

Fundraise

1Q2026 recorded total fundraises of US$5 billion (across 28 fundraises), compared to US$3.7 billion in 1Q2025 and US$8.3 billion in 4Q2025.

The largest fundraise of the quarter 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.