Private equity and venture capital (PE/VC) investments in India have surged to their highest levels in a decade, signalling renewed confidence in the country’s long-term growth potential. According to a new research
report by leading financial services powerhouse Equirus Capital, financial sponsors executed 1,761 deals between January and November 2025, surpassing the previous record of 1,726 deals in 2021. Notably, India has consistently recorded over 1,000 PE/VC deals every year for the past 10 years, underlining the depth and maturity of its investment ecosystem.
Strong Deal Momentum Driven by Large Fundraises and Record Exits
The report highlights a sharp acceleration in investment activity this year.
“Calendar 2025 has already seen an 50% jump in investments made by PE/VC funds in the first 11 months as compared to the whole of calendar 2024. With large new funds being raised by PE firms on the back of record exits in previous funds, we believe India has shown its resilience as a market that offers financial investors multiple viable routes for exit once they have managed to scale up and grow their investee companies,” said Bhavesh Shah, Managing Director and Head Investment Banking, Equirus Capital.
Investment Value Jumps 54%
Alongside the rise in deal count, investment value has also climbed significantly. Calendar year 2025 to date has recorded $34 billion in PE/VC investments—a 54% increase over the $22 billion deployed in 2024. This momentum is attributed not only to more deals but also to the rise in average deal size, which grew from $34.4 million in 2024 to $41.6 million in 2025.
Broader Participation Across Deal Sizes
Smaller deals continue to dominate activity, with transactions up to $10 million accounting for over 30% of total deal volume over the last five years. Mid-market deals between $10–25 million and $25–50 million have expanded their share significantly—from over 20% in 2020 to over 40% in 2025 so far, reflecting investor appetite for scalable, early-growth opportunities.
IT and Consumer Discretionary Lead Sectoral Flows
The IT and consumer discretionary sectors remain the biggest beneficiaries, attracting over 50% of total PE/VC investments in 2025 both by value and volume. Their dominance underscores India’s digital transformation and rising domestic consumption.
Exits Highlight Capital Market Strength
“The depth of the Indian capital markets is reflected from over 60% of the exit volume in calendar 2025 being accounted for by public markets either by way of IPOs or Block deals,” added Shah.
With record investments, rising deal sizes, and strong exit pathways, India continues to reinforce its position as one of the world’s most attractive destinations for private equity and venture capital inflows.
