2026 set to be a record year for India PE/VC fundraising with US$23.7 billion raised so far: EY-IVCA Report

• PE/VC investment activity in India reached US$4.1 billion across 111 Deals in July 2026
• Buyout investments (US$1.4 billion) accounted for the largest share of PE/VC investments
• Infrastructure emerged as the leading sector in July 2026, accounting for nearly 37% of PE/VC investments.
• PE/VC exits in July 2026 were at US$1.6 billion, an 83% decrease y-o-y

Mumbai, 31st August 2026: According to the EY-IVCA monthly PE/VC roundup, July 2026 recorded the second highest monthly investments in 2026 (US$4.1 billion), 52% higher month-on-month (US$2.7 billion in June 2026).

Vivek Soni, Partner and National Leader, Private Equity Services, EY India said, “July 2026 recorded US$4.1 billion in PE/VC investments, 3% higher year-on-year than in July 2025 (US$4 billion) and 52% higher month-on-month than in June 2026 (US$2.7 billion). The number of deals in July 2026 was 7% lower year-on-year (111 deals in July 2026 vs. 119 deals in July 2025).

Pure-play PE/VC investments in July 2026 (US$2.3 billion) declined by 29% compared to July 2025 (US$3.2 billion). Investments in the real estate and infrastructure asset class increased by 148% (US$1.8 billion in July 2026 vs. US$7111 million in July 2025). Compared with June 2026, pure-play PE/VC investments were up by 110% (US$1.1 billion), while real estate and infrastructure investments were up by 11% (US$1.6 billion). In terms of the number of deals, both pure-play investments and real estate and infrastructure declined by 7% year-on-year.

In July 2026, buyout investments emerged as the largest deal type at US$1.4 billion, followed by credit investments at US$880 million. From a sector perspective, infrastructure was the leading sector in July 2026, recording US$1.5 billion in investments, followed by financial services (US$649 million).

PE/VC exits stood at US$1.6 billion across 17 exits in July 2026, 83% lower than in July 2025 (US$9.2 billion). Secondary exits accounted for 52% of the total exit value in July 2026 (US$808 million), followed by open-market exits, which accounted for 36% (US$560 million).

Fundraising activities over the last few years have remained resilient. Despite global macroeconomic uncertainty, elevated interest rates and geopolitical tensions, investor interest in India continues to remain strong relative to other emerging markets. Fund managers are increasingly raising larger pools of capital to capitalize on long-term growth opportunities. Please see our Spotlight section for more details.

PE/VC investment activity witnessed a strong start to 2H2026, with July recording the second highest monthly investment value of the year at US$4.1 billion. This momentum was achieved despite a cautious investment environment shaped by ongoing geopolitical uncertainties. While both the INR and the public markets remained range bound, the Reserve Bank of India's stable monetary policy and stronger than expected Q1FY27 corporate earnings have helped reinforce investor confidence. Looking ahead, India's macroeconomic fundamentals remain supportive of investment activity. With significant dry powder available across PE/VC funds, deal-making is expected to accelerate further as geopolitical conditions stabilize.”

Investments

PE/VC investments in July 2026 reached US$4.1 billion, marking a 3% year‑on‑year (y‑o‑y) increase from July 2025 (US$4 billion) and a 52% month‑on‑month (m‑o‑m) increase from June 2026 (US$2.7 billion). The number of deals decreased to 111 in July 2026, representing a 7% y‑o‑y decrease from July 2025 (119 deals) and a 39% m‑o‑m increase compared to June 2026 (80 deals).

July 2026 recorded 10 large deals totaling US$2.8 billion, reflecting a 9% increase in value compared to July 2025 (US$2.6 billion across nine large deals) and a 60% increase compared to June 2026 (US$1.7 billion across six deals). Large deals accounted for 68% of overall PE/VC investments in July 2026. The largest deal of the month was Brookfield’s investment of US$600 million in Lumara.

Buyout investments accounted for the largest share of PE/VC activity in July 2026, with US$1.4 billion deployed, a 176% increase in value compared to July 2025 (US$511 million). Credit investments ranked second, with US$880 million invested—an increase of 3% from US$855 million in July 2025. Growth investments recorded US$817 million, 28% lower than the amount recorded in July 2025 (US$1.1 billion). Start-up investments followed with US$805 million, a 90% year-on-year increase (US$425 million) in July 2025. PIPE investments stood last with US$173 million, a decrease of 83% compared to July 2025 (US$1 billion).

From a sector perspective, infrastructure led PE/VC activity in July 2026 with US$1.5 billion, followed by financial services with US$649 million and food and agriculture with US$335 million. Together, these sectors accounted for 61% of overall PE/VC investments in July 2026.

PE/VC fundraise trends:

PE/VC fundraising activity has been on an upward trajectory over the last few years with funds raising an aggregate US$135.8 billion across 781 fundraises since 2016. Notably, fundraising has accelerated significantly in recent years, with nearly 72% of the total capital raised (US$97.7 billion) and 70% of all fundraises (547) recorded since 2021.

2026 has already emerged as the strongest year for PE/VC fundraising on record, with US$23.7 billion raised across 56 fundraises despite five months still remaining in the year. Fundraising activity was significantly boosted by Bain Capital's US$10.5 billion fund, focused on investments across Japan, India, China, Australia and Korea, targeting sectors such as technology, industrials, consumer, healthcare, business services and financial services. This fund alone accounted for 44% of the total capital raised during the year. In comparison, 2025 recorded the highest number of fundraises (123).

Some of the notable fundraises (apart from US$10.5 billion fund raise by Bain Capital) include US$3.2 billion raised by NIIF, US$2.7 billion raised by Tiger Global and US$2.2 billion raised by ChrysCapital.

In terms of sectoral allocation, 46% of the funds were earmarked for sector-agnostic deployment (US$45.4 billion), followed by technology (US$20.3 billion), real estate (US$12 billion) and infrastructure (US$9.7 billion). In terms of the number of fundraises, sector-agnostic funds saw the highest number (219), followed by technology (154) and real estate (55).

Private Equity (PE) led the fundraising arena, raising US$39.8 billion (41% of total funds raised), followed by Venture Capital (VC) funds at US$28.0 billion (29%), and debt funds at US$12.9 billion (13%).

According to a VCCircle report, dry powder available to India-focused Alternative Investment Funds (AIFs) is approaching the US$100 billion mark. This substantial pool points to a favorable medium-term outlook for the PE/VC ecosystem. As investor sentiment gradually improves and geopolitical uncertainties moderate, a meaningful portion of this capital is expected to be deployed, potentially accelerating deal activity.

Looking ahead, fundraising activity is expected to remain healthy, supported by improving market conditions, strong exit potential, increasing allocations from global LPs to India-focused strategies, and continued confidence in India's long-term growth trajectory.

Exits

July 2026 recorded 17 exits worth US$1.6 billion compared to US$9.2 billion across 26 exits in July 2025 (which included Temasek’s exit from Schneider Electric India for US$6.4 billion) and US$1.5 billion across 24 exits in June 2026. (The deal values were not available for four of the 17 exits recorded in July 2026.)

Secondary exits were highest in July 2026, totaling US$808 million across four exits, accounting for 52% of the total exit value.

The largest exit in July 2026 was NIIF and others selling their 100% stake in Aseem Infrastructure Finance Limited (AIFL) for US$521 million.

Fundraise

July 2026 recorded total fundraises of US$2.5 billion (across eight fundraises), compared to US$1.5 billion in July 2025 (across 14 fundraises) and US$4.3 billion (across four fundraises) in June 2026.

The largest fundraise of the month was ‘Startup India Fund of Funds 2.0’ for US$1 billion. The government initiative seeks to bridge funding gaps and broaden the reach of venture capital beyond major metropolitan hubs.