PE/VC investment activity in India reached US$17.1 billion across 348 Deals in in 3Q2026, a 46% year-on-year increase: EY-IVCA Report

• Buyout investments (US$5.1 billion) accounted for the largest share of PE/VC investments, followed by start-up investments (US$4.8 billion)
• Infrastructure was the top sector in 3Q2026, recording US$7.2 billion, followed by healthcare (US$3.1billion)
• India has recorded 290 PE/VC-backed IPOs since 2016; nearly 75% occurred since 2021

Mumbai, 30 October 2026: According to the EY-IVCA monthly PE/VC roundup, September recorded the highest monthly investment in 2026 so far (US$7 billion).

Vivek Soni, Partner and National Leader, Private Equity Services, EY India said, “3Q2026 recorded US$17.1 billion in PE/VC investments, a 46% year-on-year increase (US$11.7 billion in 3Q2025) and a 124% quarter-on-quarter increase (US$7.6 billion in 2Q2026). The number of deals decreased to 348 in 3Q2026, a 9% year-on-year decrease (384 deals in 3Q2025), but saw a 44% quarter-on-quarter increase (241 deals in 2Q2026).

Pure-play PE/VC investments in 3Q2026 (US$8.5 billion) declined by 2% compared to 3Q2025 (US$8.6 billion). Investments in the real estate and infrastructure asset class increased by 182% to US$8.6 billion in 3Q2026 from US$3.2 billion in 3Q2025. Compared to 2Q2026, pure-play PE/VC investments were up by 92% from US$4.4 billion, and real estate and infrastructure investments increased by 168% from US$3.2 billion. In terms of the number of deals, pure-play investments decreased by 10% year-on-year, whereas real estate and infrastructure deal volume was down by 3% year-on-year.

In 3Q2026, buyout deals were the highest at US$5.1 billion, followed by start-up investments at US$4.8 billion. From a sector point of view, infrastructure was the top sector in 3Q2026, recording US$7.2 billion in investments, followed by healthcare (US$3.1 billion).

PE/VC exits stood at US$10.4 billion across 113 deals in 3Q2026, 24% lower than in 3Q2025 (US$13.7 billion). Open market exits accounted for 57% of the total exit value (US$5.9 billion).

In the recent past, PE/VC-backed IPOs had emerged as a key exit route for investors, supported by strong capital markets and a healthy valuation environment. Going forward, IPO success is expected to be driven increasingly by profitability and earnings visibility rather than market sentiment and momentum. Because of prevailing volatility and mid-cap / small-cap trading multiple compression, near-term IPO activity may be moderate, but the long-term outlook remains positive. Please see our spotlight section on PE backed IPO’s for more details.

September 2026 emerged as the strongest month for PE/VC investments this year, driven by the highest number of large deals YTD. It also recorded the highest monthly investment value since May 2024 (US$7.3 billion in May 2024).

While the Indian capital markets have largely consolidated over the past few weeks, the upcoming quarterly earnings season is being closely watched given prevailing inflationary pressures. The recent repo rate hike by the Reserve Bank of India reflects a proactive approach as high crude oil prices persist. Going forward, we expect PE /VC investors to remain cautious and selective and prioritize resilience of future profitability and return on capital.”

Investments

PE/VC investments in 3Q2026 reached US$17.1 billion, marking a 46% year‑on‑year (y‑o‑y) increase from 3Q2025 (US$11.7 billion) and a 124% quarter‑on‑quarter (q‑o‑q) increase from 2Q2026 (US$7.6 billion). The number of deals decreased to 348 in 3Q2026, representing a 9% y‑o‑y decline from 3Q2025 (384 deals) but a 44% q‑o‑q increase compared to 2Q2026 (241 deals).

3Q2026 recorded 36 large deals totaling US$13 billion, reflecting a 97% increase in value compared to 3Q2025 (US$6.6 billion across 26 large deals) and a 178% increase compared to 2Q2026 (US$4.7 billion across 21 large deals). Large deals accounted for 76% of overall PE/VC investments in 3Q2026. The largest deal of the quarter was KKR’s acquisition of Medicover India for US$1.4 billion.

By deal type, buyout investments accounted for the largest share of PE/VC activity in 3Q2026, with US$5.1 billion deployed, a 419% increase in value compared to 3Q2025 (US$1 billion). Start-up investments ranked second, with US$4.8 billion invested, an increase of 55% from US$3.1 billion in 3Q2025. Growth investments recorded US$3.5 billion, 2% lower than the amount recorded in 3Q2025 (US$3.6 billion). PIPE investments reached US$2.6 billion in 3Q2026 compared to US$1.5 billion in 3Q2025. Credit deals were the smallest segment at US$1.2 billion, 54% lower than the value recorded in 3Q2025 (US$2.6 billion).

From a sector perspective, infrastructure led in 3Q2026 with US$7.2 billion, followed by healthcare with US$3.1 billion and real estate with US$1.4 billion. Together, these sectors accounted for 69% of overall PE/VC investments in 3Q2026.

PE/VC-backed IPOs

Indian PE/VC-backed IPO market has undergone significant evolution over the past decade. Since 2016, a total of 290 PE/VC-backed IPOs have been recorded, with nearly 75% of these listings (217 IPOs) occurring in the last five years alone (since 2021), underscoring the increasing role of private capital in shaping India's public markets.

The year 2021 marked a peak for India’s PE/VC-backed IPO market, with 44 listings generating approximately US$5.2 billion in exit proceeds for investors, supported by strong market conditions, liquidity and robust investor demand. Activity moderated in 2022 amid global market volatility driven by inflation, rising interest rates and geopolitical uncertainties, before rebounding in 2023. Momentum strengthened further in 2024 and 2025, with 42 PE/VC-backed IPOs in each year, driven by India’s resilient economic growth. Despite continued global uncertainties, the trend has remained robust in 2026, with 39 PE/VC-backed IPOs recorded so far, highlighting the depth of the IPO pipeline and sustained investor confidence in PE/VC-backed businesses.

Over the last five years (since 2021), PE/VC-backed IPO exits have realized US$17.1 billion for PE/VC investors across 217 IPOs. In terms of sectors, financial services led PE/VC-backed IPO exits in both value and volume (US$4.2 billion across 36 IPOs), followed by e-commerce (US$2.6 billion across 14 IPOs). Automotive ranked third, while technology and healthcare ranked fourth and fifth, respectively. These sectors recorded exits worth more than US$1 billion each and collectively accounted for 69% of total PE/VC-backed IPOs by value since 2021.

The surge in PE/VC-backed IPOs in recent years reflects the growing maturity, depth and resilience of India's capital markets. Public listings have emerged as an increasingly preferred exit route for investors, offering enhanced liquidity and the potential for superior value realization compared to private transactions. This trend underscores rising investor confidence in the Indian market and highlights the critical role of IPOs in enabling PE/VC investors, particularly early-stage backers, to monetize investments while strengthening market visibility.PE/VC-backed companies now account for a meaningful share of India’s overall IPO activity, demonstrating the increasing integration of private capital with the public markets ecosystem. Supported by strong economic fundamentals and sustained investor interest, India continues to attract significant private equity and venture capital investment. As the capital markets further deepen and evolve, PE/VC-backed IPOs are expected to remain a key feature of the fundraising and exit landscape, providing a vital avenue for companies to access public capital and fuel their next phase of growth. While IPO activity may witness some moderation in the near-term amid prevailing market uncertainties, the long-term outlook for PE/VC-backed IPOs remains highly positive.

Exits

3Q2026 recorded 113 exits worth US$10.4 billion, the highest quarterly exit value in the TTM. Exit value was 24% lower than 3Q2025 (US$13.7 billion) but 107% higher than 2Q2026 (US$5.0 billion), while exit volume was 35% higher than 3Q2025 (84 exits) and 105% higher than 2Q2026 (55 exits). Deal values were unavailable for 11 exits in 2Q2026.

Open market exits led with US$5.9 billion across 54 exits, accounting for 57% of total exit value in 3Q2026 — a 93% year-on-year increase from US$3.1 billion across 26 exits in 3Q2025, and 113% higher than 2Q2026 (US$2.8 billion across 24 exits). Secondary exits followed with US$2.0 billion across 15 exits, an 18% year-on-year increase from US$1.7 billion across 16 deals in 3Q2025. With 27 PE-backed IPOs, 3Q2026 saw the highest number in a quarter, but the value dropped from US$8.6 billion in 3Q2025 (17 IPOs) to US$1.2 billion in 3Q2026. Strategic exits totaled US$1.3 billion across 15 exits, a 257% year-on-year increase from US$369 million across 24 deals in 3Q2025. 3Q2026 saw two buyback deals worth a total of US$13 million.

The largest exit in 3Q2026 was Avaada Ventures’ repayment of US$701 million in debt to Brookfield Renewable.

By sector, financial services recorded the highest exit value at US$2.8 billion across 21 exits, followed by e-commerce (US$2 billion) and healthcare (US$1.4 billion).

Fundraise

3Q2026 recorded total fundraises of US$6.4 billion (across 32 fundraises), compared to US$16.2 billion in 3Q2025 and US$4.7 billion in 2Q2026.

The largest fundraise of the quarter saw NIIF Infrastructure Fund II achieve US$2 billion first close, backed by the Government of India and leading global and Indian institutional investors.