Mumbai, June 23
Private equity and venture capital (PE-VC) investments in India stood at $2.4 billion across 97 deals in May, according to a report released on Monday.
The EY-IVCA report said that startup investments were the highest deal type last month, followed by growth investments at $0.7 billion.
From a sector point of view, financial services was the top sector in May, recording $758 million in investments, followed by real estate ($380 million).
“PE/VC activity continues to remain subdued, as reflected in the limited deal flow and reduction in large deals (deals above $100 million). Heightened geopolitical tensions, US tariff policy and other external headwinds have dampened investor sentiment, resulting in a cautious and wait-and-watch approach,” said Vivek Soni, Partner and National Leader, Private Equity Services, EY.
In terms of the number of deals, pure-play investments declined by 16 per cent, whereas the real estate and infrastructure asset classes declined by 64 per cent year-on-year.
PE/VC exits stood at $1 billion across 18 deals in May. Open market exits accounted for 77 per cent of the total exit value in May 2025 ($797 million).
According to Soni, the bid-ask spread between seller expectations and buyer valuations has not converged meaningfully as yet, dampening PE/VC investment activity.