India Emerges as Bright Spot in Asia-Pacific's PE-VC Landscape: Report Deal volumes also saw a strong uptick. VC/PE growth deals rose from 880 in 2023 to about 1,270 in 2024. Meanwhile, PE's share of investment value tilted more toward buyouts: buyout or majority control deals made up 51 per cent of total PE deal value in 2024, up from around 37 per cent in 2022.
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India's private equity-venture capital (PE-VC) ecosystem is showing renewed vigor, even as the broader Asia-Pacific region grapples with slowing capital flows and mounting macro-headwinds.
According to Bain & Company's India Private Equity Report 2025, India's PE-VC deal value rose by about 9 per cent year-on-year in 2024 to approximately USD 43 billion, rebounding after two years of contraction. While private equity (PE) deal-value held roughly steady at about USD 29 billion, growth came largely from venture capital and growth-stage investments, which surged approximately 40 per cent to around USD 14 billion.
Deal volumes also saw a strong uptick. VC/PE growth deals rose from 880 in 2023 to about 1,270 in 2024. Meanwhile, PE's share of investment value tilted more toward buyouts: buyout or majority control deals made up 51 per cent of total PE deal value in 2024, up from around 37 per cent in 2022.
India not only posted growth domestically but also strengthened its position in the APAC region. It accounted for nearly 20 per cent of total PE-VC deal value in the Asia-Pacific (ex-Japan) region in 2024, making it the second most popular destination for investment after China.
While deal value and volume recovered, fundraising has not been uniformly strong. Bain's India Venture Capital Report 2025 showed a sharp decline, at 35 per cent in VC-growth fund-raising, at least in certain segments, down to USD 2.7 billion, the lowest since 2020, according to Bain.
Divya Thakur, India co-chair of Morgan Lewis, told ION Analytics earlier that GPs are having to make significant compromises to get domestic LPs across the line. While compromises can win commitments, they add operational complexity and can blur the alignment of incentives that drive performance.
This points to a shift, with global LPs somewhat more selective, domestic capital (insurance funds, pension funds, sovereign wealth, family offices) is increasingly important, but also harder to secure on ideal terms.
EY-IVCA's 1H2025 data (for India) shows PE/VC investments of USD 26.4 billion across 593 deals, up approximately 11 per cent over the second half of 2024, though down from the first half of 2024. This suggests momentum, though also a degree of volatility and sensitivity to global macro, valuations, regulatory shifts (e.g., trade/tariff policy), and interest rates.
