Indian Investment Trends 2025: A Dive into PE, VC, and M&A Dynamics

The India Invests (i2) Report, H1 FY 2025, reveals trends in private equity, venture capital, and mergers & acquisitions in India. While PE deal volume slightly increased, deal value fell. Startups attracted 49% of PE investments. M&A activity rose 9%, with domestic deals dominating. Sectoral highlights include IT, healthcare, and telecommunications.

Mumbai – The latest edition of the India Invests (i2) Report for H1 FY 2025 by 360 ONE Wealth and VCCEDGE unveils key trends in India's investment landscape. A slight revival in private equity deal volume contrasted a 9% decline in deal value, with Bengaluru leading in deal count. Remarkably, Maharashtra topped with nearly doubling Karnataka in deal value.

Startups emerged resilient, capturing 49% of private equity funding. Angel and seed funding stages accounted for 56% of deal volume, and venture capital saw a 26% surge. Series E+ rounds marked a 2.1x funding increase, evidencing confidence in growth-stage businesses. Meanwhile, M&A activity rose by 9%, bolstered by domestic deal dominance at 79% of the total volume.

Despite international caution, outbound deals significantly grew with a 3x value increase. Healthcare investments, particularly in multi-specialty hospitals, pushed the sector's deal value by 2.3x. Exit strategies shifted, with open market exits surging to 59% of volume, though total exit deal value saw a 41% decline, highlighting sectoral investor confidence shifts.

(With inputs from agencies.)