PE/VC Investments For May 2025 Show Decline in Value Private equity and venture capital (PE/VC) investments in India declined by 53 per cent in May 2025 compared to April 2025 in value terms, according to an EY-IVCA report.
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Private equity and venture capital (PE/VC) investments in India declined by 53 per cent in May 2025 compared to April 2025 in value terms, according to an EY-IVCA report.
Vivek Soni, Partner and National Leader, Private Equity Services, EY said, "May 2025 recorded US$2.4 billion in PE/VC investments, 68 per cent lower than investments in May 2024 and 53 per cent lower than in April 2025. The number of deals in May 2025 was 24 per cent lower year-on-year."
Soni added that in May 2025, start-up investment deals emerged as the highest at USD 1.1 billion, followed by growth investments at USD 0.7 billion and from a sector point of view, financial services was the top sector in May 2025, recording USD 758 million in investments, followed by real estate at USD 380 million.
PE/VC investments in May 2025 totalled USD 2.4 billion, 68 per cent lower than the USD 7.3 billion recorded in May 2024. This was also 53 per cent lower than the USD 5 billion recorded in April 2025. The number of deals in May 2025 declined by 24 per cent year-on-year, with 97 deals compared to 128 in May 2024, and 16 per cent compared to April 2025, with 115 deals, according to the recent EY-IVCA report.
The report further states that start-up investments accounted for the largest share of PE/VC activity in May 2025, with US$1.1 billion deployed, which is a 21 per cent increase in value over May 2024 (USD 871 million).
Growth investments ranked second, with USD 710 million invested in May 2025, down 71 per cent from USD 2.5 billion in May 2024. Credit investments reached USD 319 million, marking a 77 per cent year-on-year decrease (USD 1.4 billion in May 2024). Private investment in public equity (PIPE) investments totaled US$184 million, 38 per cent lower than May 2024 (USD 299 million). Buyout investments were the smallest segment at US$88 million, representing a 96 per cent decline from USD 2.3 billion in May 2024.
"PE/VC activity continues to remain subdued, as reflected in the limited deal flow and reduction in large deals above USD100 million. Heightened geopolitical tensions, US tariff policy, and other external headwinds have dampened investor sentiment, resulting in a cautious and wait-and-watch approach. Further, the bid-ask spread between seller expectations and buyer valuations has not converged meaningfully as yet, dampening PE/VC investment activity," said Soni in the report.
Companies in the financial services sector led the way in May in terms of funding with USD 758 billion across 21 deals, followed by real estate with USD 380 million. These two sectors accounted for 48 per cent of overall PE/VC investments.
In terms of exits, May 2025 recorded 18 exits worth USD 1 billion, compared to USD 2.6 billion across 24 exits in May 2024 and USD 619 million across 16 exits in April 2025. The largest exit recorded during the month was Carlyle's sale of its 10 per cent stake in PNB Housing Finance for USD 320 million.
The month recorded a total fundraise of USD 3 billion, compared to USD 608 million in May 2024 and USD 1.1 billion in April 2025. Quadria Capital, a healthcare-focused firm, raised USD 1.1 billion, intending to build a diversified portfolio of up to 10 market-leading companies, acquiring minority and majority stakes.
