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Private equity investments to revive in India in second half of 2025: Report

June 11, 2025

New Delhi, June 11

Private equity (PE) activity in India is expected to revive in the second half of 2025 as market valuations stabilise and exit opportunities improve, according to a report on Wednesday.

India recorded 179 deals valued at $4.5 billion in May. Excluding IPOs and QIPs, the market saw 175 transactions worth $4.2 billion, reflecting a 17 per cent drop in volumes and a marginal 4 per cent decline in values compared to April, according to the report by Grant Thornton Bharat.

Additionally, the uptick in outbound M&A signals growing corporate confidence in global expansion and strategic diversification.

"May marked a slowdown in overall deal activity due to muted private equity sentiment. The emergence of two unicorns and an uptick in Corporate India's outbound deals indicate a promising deal outlook,” said Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.

“Expect deal momentum to build in the second half in the backdrop of a rejuvenated IPO market,” she mentioned.

The Mergers and Acquisitions (M&A) activity in May remained steady, with 68 deals valued at $2.4 billion, marking a 75 per cent increase in deal value compared to April, despite a marginal 1 per cent dip in volumes.

Notably, outbound M&A activity saw a sharp rise, with 15 deals closed versus just two in April, signalling renewed confidence among Indian corporates to pursue cross-border growth and integration after nearly a decade.

 

 

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