Start-ups lead deal activity; infrastructure tops sectors; exits touch $11.6 billion

Mumbai: Private equity and venture capital (PE/VC) investments in India reached US$26.4 billion across 593 deals in the first half of 2025 (1H2025), according to the EY-IVCA PE/VC roundup report. This marks an 11% rise from 2H2024, though a 19% dip from 1H2024’s US$32.4 billion.

Start-ups emerged as the biggest attraction, drawing US$6.8 billion—up 41% year-on-year. Infrastructure was the top sector with US$5.8 billion, followed by financial services (US$4 billion) and technology (US$3.8 billion). Large deals (above US$100 million) made up 73% of total investments, with New Mountain Capital’s US$1.5 billion investment in Access Healthcare leading the chart.

PE/VC exits totaled US$11.6 billion across 99 deals, a 2% year-on-year increase. Strategic exits dominated with US$4.5 billion, a 480% surge from 1H2024. PE-backed IPO exits also doubled to US$1.5 billion.

Despite sectoral growth, investment sentiment remained cautious due to global headwinds and market volatility. “The wide bid-ask spread and muted IPO activity continue to slow closures,” said Vivek Soni, EY’s PE leader.

Financial services, which attracted over US$75 billion in the past decade, saw FinTech lead with US$16.5 billion since 2020. NBFCs and housing finance followed, driven by digital adoption and credit growth.

On the fundraising front, US$8.4 billion was raised across 54 funds, up 26% year-on-year. Quadria Capital’s US$1.1 billion fund was the largest.

While the first half saw mixed momentum, a revival is expected in the second half of 2025, backed by improved earnings, strong GST collections, and a robust IPO pipeline.