India's PE/VC Investments Reach USD 11.7 Bn in Q3 2025: Report Financial services emerged as the top sector in Q3 2025, attracting USD 3.1 billion in PE/VC investments, reflecting a strong 76 percent year-on-year growth.

Private equity and venture capital (PE/VC) investments in India stood at USD 11.7 billion across 369 deals during the third quarter of 2025, marking a 20 percent year-on-year increase compared to the same period last year.

According to the latest EY-IVCA PE/VC roundup report, while investment value dropped slightly by 5 percent compared to the previous quarter, overall deal activity showed strong resilience amid global economic uncertainties.

Vivek Soni, Partner and National Leader of Private Equity Services at EY India, said, "The third quarter of 2025 recorded USD 11.7 billion in PE/VC investments, 20 percent higher than in the same quarter of 2024 and only 5 percent lower than the previous quarter. The number of deals also rose 11 percent year-on-year, totaling 369 transactions compared with 331 a year ago."

Investments

Pure-play PE/VC investments—excluding real estate and infrastructure—rose to USD 8.8 billion, up 25 percent from the previous year. In contrast, real estate and infrastructure investments grew modestly by 6 percent to USD 2.9 billion. Compared to the previous quarter, pure-play investments increased 27 percent, while real estate and infrastructure deals saw a 46 percent decline.

Growth investments led the pack, attracting USD 4.1 billion, followed by start-up investments worth USD 3.5 billion. By sector, financial services remained the frontrunner with USD 3.1 billion in inflows, reflecting a 76 percent jump from USD 1.7 billion a year earlier. Infrastructure followed with USD 1.7 billion, while technology secured USD 1.3 billion in funding.

Large deals, valued above USD 100 million, accounted for a significant share of the total investment activity. The quarter recorded 27 such transactions worth USD 6.8 billion—a 27 percent rise in value compared to 3Q 2024 but 21 percent lower than the previous quarter. The largest investment came from Oaktree Capital, which committed USD 1.1 billion in credit to Megha Engineering and Infrastructures.

The report highlighted that PE/VC activity has been volatile through 2025. Year-to-date investments fell 9 percent to USD 38.4 billion compared to USD 42.1 billion in 2024. Despite uneven performance across months, several periods: February, April, June, July, and September; recorded notable growth.

"The anticipated benefits of recent GST reforms, amplified by the holiday season, are expected to reflect in corporate earnings. This could improve market sentiment and narrow the gap between seller expectations and buyer valuations. Progress on the US-India free trade agreement in November may further enhance foreign investor confidence. We maintain a cautiously optimistic outlook and will look at FPI flows into Indian markets as a leading confidence indicator," Soni added.

Exits

The third quarter of 2025 saw an impressive USD 13.7 billion in exits across 81 deals—up 61 percent year-on-year and 172 percent from the previous quarter. This marked the third-highest quarterly exit value on record and the strongest since Q2 2021. Strategic exits dominated, accounting for 63 percent of the total exit value at USD 8.6 billion, a 372 percent surge from the same period last year.

The largest exit was Temasek's USD 6.4 billion sale of a 35 percent stake in Schneider Electric India. Open market exits amounted to USD 3.1 billion across 26 deals, while secondary exits totaled USD 1.7 billion.

The quarter also witnessed a record number of PE-backed IPOs, with 16 offerings generating USD 369 million, compared with 9 IPOs worth USD 705 million a year earlier. Industrial products topped the exit value chart with USD 6.4 billion across 14 deals, followed by financial services at USD 2.2 billion.

Fundraise

Fundraising activity remained robust, with USD 4.2 billion raised across 35 funds. This represented a 144 percent increase from 3Q 2024, although it was 34 percent lower than the previous quarter.

The largest fundraise came from Motilal Oswal Alternates, which secured USD 800 million to invest in mid-market companies across diversified sectors.

Despite ongoing global challenges, India's PE/VC ecosystem continues to demonstrate resilience and long-term growth potential. The strong performance in financial services, steady deal flow, and heightened exit activity suggest that investors remain confident in the country's economic fundamentals heading into 2026.