Private equity (PE) and venture capital (VC) activity in India has surged to a three-year peak, reaching US$ 26 billion (Rs. 2,28,852 crore) during the first nine months of 2025. This milestone surpasses total investments in both 2023 and 2024, signaling renewed global confidence in India’s economic growth. Factors driving this surge include strong agricultural output, a favourable monsoon, and rising consumer demand during the festive season, according to Equirus Capital.
The number of deals also rose substantially, with 1,363 transactions recorded between January and September 2025, up from 1,170 deals in the entire year of 2024. Average deal values increased to Rs. 322 crore (US$ 36.6 million), compared to Rs. 303 crore (US$ 34.4 million) the previous year. Notably, mid-sized strategic deals ranging from Rs. 88-220 crore (US$ 10-25 million) now represent 31% of total transactions, reflecting the growing importance of targeted investments in key sectors.
The IT and consumer staples sectors led the investment momentum, contributing 35% and 13% of total deal value, respectively. Strong demand for digital infrastructure, software exports, and AI-driven innovations has reinforced India’s position as a prime destination for technology-focused investments.
Although exit activity moderated to Rs. 96,822 crore (US$ 11 billion), the prevalence of block deals and secondary sales indicates the depth and resilience of India’s capital markets. Experts note that India’s decade-long track record of over 13,000 deals worth Rs. 24,20,550 crore (US$ 275 billion) underscores its status as a hub for high-growth investments and entrepreneurial dynamism.
This robust PE-VC activity in 2025 highlights India’s continued appeal to global investors seeking long-term growth opportunities. With technology-led innovation, strategic mid-sized deals, and festive season-driven consumer demand, India’s capital markets are poised for further expansion, consolidating the country’s role as a key player in the global investment landscape.
