Executive summary

After two years of contraction, private equity and venture capital (PE-VC) investments in India recovered in 2024, rebounding ~9% year over year to reach ~$43 billion. This resurgence was driven primarily by VC and growth investments, while PE dealmaking held steady.

VC and growth investments surged ~40% to ~$14 billion, fueled by a sharp rise in deal volumes. The number of VC deals increased from 880 in 2023 to 1,270 in 2024, alongside about a two-times jump in consumer tech funding to ~$6 billion. In contrast, PE investments remained steady at ~$29 billion, as funds contended with rich valuations driven by buoyant public markets.

India strengthened its position as the Asia-Pacific region’s second-largest PE-VC destination with a ~20% share of total investment, reflecting growing investor confidence in the country’s macroeconomic stability. Buyouts gained prominence, accounting for 51% of total PE deal value, up from 37% in 2022. Funds increasingly focused on acquiring high-quality assets across sectors to drive broader value creation and deploy capital at scale.

Traditional sectors continued to attract substantial capital. Real estate and infrastructure emerged as the largest investment sector, claiming ~16% of total PE-VC investment. Deal value surged 70%, led by the American Tower Corporation (ATC) megadeal and strong momentum in road infrastructure and residential real estate projects. Financial services investments grew ~25%, driven by renewed interest in affordable housing finance, loan against property (LAP) solutions, and lending to micro, small, and medium-enterprises (MSMEs). Healthcare deal volumes rose ~80%, fueled by large medtech transactions, increased investments in pharma contract development and manufacturing organizations (CDMOs), and continued growth in single-specialty and regional provider chains. IT and IT-enabled services (ITeS) investments surged ~300%, driven by major deals (e.g., Perficient and Altimetrik) and multiple revenue cycle management (RCM) investments (e.g., GeBBS, Vee, Infinx).

India experienced a record year in domestic fundraising. Kedaara closed its largest-ever fund at ~$1.7 billion in 2024, while ChrysCapital secured ~$2.1 billion in 2025 for the country’s largest-ever domestic fund. Likewise, a growing number of global funds and government-linked investors are ramping up capital commitments to India, reinforcing its position as a premier investment destination within the Asia-Pacific region.

Exit activity surged in 2024, reaching ~$33 billion and growing 16% year over year as investors capitalized on richly valued public markets to monetize assets. Public market exits gained prominence, increasing from ~51% of total exit value in 2023 to ~59% in 2024, driven by a rise in IPO activity and block trades.

The financial services, healthcare, and consumer/retail sectors led the exit landscape. Large public market sales dominated financial services and consumer exits, while healthcare exits were more diversified across sponsor-to-sponsor, strategic, and public market transactions. Exits are expected to accelerate in 2025 as funds look to offload aging assets, though recent corrections in public markets could temper momentum.

India’s PE-VC investment outlook remains cautiously optimistic, supported by robust GDP growth, cooling inflation, and favorable policy measures, including interest rate cuts and tax rebates aimed at stimulating private consumption. Strong investor interest is expected to persist in the financial services, healthcare, and real estate sectors, while consumer/retail is poised for recovery as consumption trends improve. However, global trade tensions introduce uncertainties.

As limited partners (LPs) such as sovereign wealth funds and public pension funds increasingly prioritize direct investments and co-investment structures, funds must demonstrate strong operational value creation to secure commitments in a competitive capital-raising environment. Heightened scrutiny of fund performance and track records will further influence investment dynamics. With India’s PE-VC market on a steady growth path, 2025 offers a mix of opportunities and challenges, requiring market participants to adopt a disciplined yet adaptive approach.

About IVCA

The Indian Venture and Alternate Capital Association (IVCA), founded in 1993, is a not-for-profit, apex industry body promoting the alternate capital industry and fostering a vibrant investing environment in India. IVCA is committed to supporting the ecosystem by championing regulatory interventions; facilitating advocacy discussions with the Government of India, policymakers, and regulators, resulting in the rise of entrepreneurial activity, innovation, and job creation; and contributing towards the development of India as a leading fund management hub. IVCA represents 430+ funds with a combined India AUM of over US$ 350 billion. Our members are the most active domestic and global VCs, PEs, infrastructure, real estate, and credit funds, limited partners, investment companies, family offices, corporate VCs, hedge funds, and knowledge partners.