American Capital to Continue Flowing into India: Reports American VC continues to be a key contributor to this trend, with US-based private equity giants like Blackstone planning a USD 25 billion India PE portfolio over five years, citing the country's stable regulations and immense growth in digital infrastructure.
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According to a Bain & Company – IVCA report, India's private equity and venture capital (PE‑VC) ecosystem rebounded in 2024, crossing USD 43 billion across 1,600 deals, a solid 9 per cent year‑on‑year increase after two years of decline.
The report attributed the rebound to being largely driven by robust investments in the digital space, fintech, and healthtech sectors.
American VC continues to be a key contributor to this trend, with US-based private equity giants like Blackstone planning a USD 25 billion India PE portfolio over five years, citing the country's stable regulations and immense growth in digital infrastructure.
At an earlier IVCA Summit held in Mumbai, Mukesh Mehta, Senior Director, Blackstone, said that valuations in the IPO market were double what the PE market offered. Manish Kejriwal, founder and managing partner at Kedaara Capital, predicted that the second half of 2025 will be a buyer's market and deal flow should accelerate, as reported by Reuters.
The remarks underscore US-backed capital's belief in India's growth potential, even if public exit routes slow down.
VC and growth investments surged by approximately 40 per cent, clocking 14 billion, driven by a sharp increase in deal volumes. The number of VC deals rose from 880 in 2023 to 1,270 in 2024, with a 2x jump in consumer tech funding to approximately USD 6 billion.
In contrast, PE investments remained steady at USD 29 billion, as funds contended with higher valuations driven by buoyant public markets. Furthermore, India became the Asia-Pacific region's second-largest PE-VC destination with a 20 per cent share of total investment, displaying growing investor confidence in the country's macroeconomic stability.
Karan Agarwal, Director, Wilson & Hughes, said that India's IPO landscape in 2025 reflects a more measured and mature ecosystem.
"We're seeing founders treat the public markets as a long-term partnership, not just an exit. There's a clear shift from chasing sky-high valuations to prioritising governance, profitability, and market fit. For investors, this signals a healthier pipeline of companies that are built to last, not just list. It's a positive sign for India's capital markets and the broader entrepreneurial economy," said Agarwal.
In 2024, U.S.-backed funds fueled a rebound, contributing to the overall USD 43-56 billion flow. While Q1 2025 brought a slight dip, seasoned US. Investors remain bullish on opportunities across fintech, deeptech, healthcare, and digital infrastructure.
