Q3 PE/VC Investments in India Drop by 5%: Report According to the report, the third quarter recorded USD 11.7 billion in PE/VC investments, which was 20 per cent higher than its corresponding quarter in 2024, but 5 per cent lower than Q2 of 2025. The number of deals, however, was 11 per cent higher year-over-year (Y-o-Y), totaling 369 deals versus 331 in the third quarter of 2024.
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Private equity and venture capital investments in India decreased by 5 per cent in the third quarter of 2025 (Q3) compared to Q2 in value terms, according to an EY-IVCA joint report.
According to the report, the third quarter recorded USD 11.7 billion in PE/VC investments, which was 20 per cent higher than its corresponding quarter in 2024, but 5 per cent lower than Q2 of 2025. The number of deals, however, was 11 per cent higher year-over-year (Y-o-Y), totaling 369 deals versus 331 in the third quarter of 2024.
Vivek Soni, Partner and National Leader, Private Equity Services, EY, said that PE/VC activity has been volatile this year, recording a 9 per cent year-on-year decline in year-to-date (YTD) investments. The figures amounted to USD 38.4 billion YTD 2025, compared to USD 42.1 billion in the same period of 2024.
"While certain months, February, April, June, July, and September, saw year-on-year growth of 20, 1, 7, 35, and 30 per cent respectively, overall activity was weighed down by muted performance in the remaining months. This uneven trend highlights the impact of multiple global headwinds, including geopolitical uncertainties," said Soni.
Categorised by deal types, growth investments stood at USD 4.1 billion with over 80 recorded deals, up from 48 per cent from 2024's corresponding quarter. Investments into startups also followed closely with a total of USD 3.5 billion with 204 deals, a steep 51 per cent increase from USD 2.3 billion across 159 deals.
"The anticipated benefits of recent GST reforms amplified by the holiday season are expected to reflect in upcoming corporate earnings, potentially boosting market sentiment and hopefully reduce the bid-ask spread between seller expectations and buyer valuations. Progress on the US-India FTA in November could further enhance foreign investor confidence. We maintain a cautiously optimistic outlook and will look at FPI flows into the Indian markets as a leading confidence indicator," added Soni.
Coming to exits, the quarter also saw the highest-ever number of PE-backed IPOs, generating a total of USD 369 million across 16 exits, compared to just 9 IPOs in Q3 2024 and 4 in Q2 2025.
The largest exit in the quarter was Temasek's sale of its 35 per cent stake in Schneider Electric India Private Limited for a value of USD 6.4 billion. The transaction allowed Schneider to reach full ownership.
Olivier Blum, CEO of Schneider Electric, said, "India is one of the key focus markets of Schneider Electric for the years to come and I am very excited by the prospect to capture the full growth potential of this unique opportunity we have in the country and also to leverage our exceptional talents in R&D, Digital and supply-chain in India to support our operations in the region and beyond."
Fundraising in Q3 2025 amounted to USD 4.2 billion across 35 funds, recording a 144 per cent increase from the Q3 2024 numbers (USD 1.7 billion across 29 funds). However, the numbers saw a 34 per cent decline from Q2 2025, which saw 26 funds raising a total of USD 6.4 billion.
Motilal Oswal Alternates raised the highest funds in Q3, with a USD 800 million fundraise, with plans to invest USD 40-80 million in mid-market companies across various sectors.
Vishal Tulsyan, Founder and Chairman at Motilal Oswal Alternates, said, "With India GDP growing at ~2.5x the world average, we are very excited as India travels the journey from being a USD 4 trillion (fourth largest) economy today to USD 10 trillion in the next decade. With this backdrop, Fund V enables us to continue our legacy of partnering with businesses that demonstrate strong fundamentals and scalable profitable models, helping them accelerate growth and create lasting value."
