pe vc investments

The exuberance of Indian investors has pushed valuations so high that MNCs as well as PE/VC funds are seizing the opportunity to exit

“Average returns on exited investments have risen from 8% from the 2006–2008 vintage to 22% in the 2012–2014 vintage,” says the ‘Indian Private Equity: Coming Of Age’ report by McKinsey, which analyses a dollar internal rate of return (IRR) for a sample of 654 PE exits between 2003 and 2017.

Private equity-venture capital funds invested $6 billion in India-based companies in Q3'23, a 15% decline compared to the same period in 2022. The investment amount also dipped by 49% compared to the previous quarter. However, recent weeks have seen increased investment activity from global investors and India-focused firms. The first nine months of 2023 saw a 38% decrease in investment compared to the same period in 2022. Q3'23 witnessed 16 mega deals worth $4.5 billion, and the creation of one new unicorn startup. Overall, unicorn startups in India attracted close to $400 million in Q3'23.

Private equity-venture capital (PE-VC) investments in India ended 2024 at $31.1 billion, the lowest since 2019, with a 5.5% decline from 2023. Despite this, the number of deals surpassed 1,000. The largest deal was Brookfield's $2 billion investment in ATC India.

Indian PE/VC investments in 2020 to be $19 billion to $26 billion; a reduction of 45% -60% from 2019 levels as per EY’s latest report titled, “COVID-19: projected impact on Indian PE/VC.” PE/VC exits are also expected to reduce by 50%-67% % from 2019 levels, adds the study.

Data from research firm Venture Intelligence (VI) shows that April saw $2.3 billion in PE-VC investments compared to over $6 billion in March, when large-value infrastructure and NBFC deals made up over 60%, making the earlier month an outlier. The number of PE-VC deals in April rose marginally to 68 from 58 deals in March.

New Delhi, Nov 7 () Private equity and venture capital deals in India touched a record high with investments worth USD 21.8 billion so far this year, mainly driven by big-ticket transactions, according to a new EY report. PE/VC investments in January-October 2017 recorded USD 21.

Indian private equity and venture capital investments experienced a significant downturn in May 2025, plummeting to $2.4 billion across 97 deals. This represents a 68% decrease compared to the $7.3 billion invested in May 2024. While startups saw a rise in investments, overall activity was hampered by global headwinds and valuation disagreements, leading to subdued exits as well.