PE-VC investments in May plummet 68% amid global headwinds

Private equity and venture capital investments in India fell sharply in May 2025, reaching $2.4 billion across 97 deals, a 68% drop from the $7.3 billion invested across 128 transactions in May 2024, according to the IVCA-EY PE and VC roundup for the month.The number of deals also contracted, down 24% year‑on‑year and 16% from April 2025. Pure‑play PE/VC activity accounted for $1.9 billion in May, down 60% from a year ago. Real estate and infrastructure investments dropped by 82%, attracting only $498 million versus $2.7 billion in the same period last year.Startups emerged as the top segment with $1.1 billion in investments, a 21% rise compared to May 2024. Growth‑stage investments followed, totalling $710 million, although down 71% year‑on‑year.

Credit and PIPE (private investment in public equity) investments also contracted sharply, falling 77% and 38%, respectively.Financial services was the top sector for the month, drawing $758 million across 21 deals, followed by real estate with $380 million. Together, the two accounted for nearly half of total PE-VC activity.Exits also remained subdued. Investors announced 18 exits worth $1 billion in May, down 60% from $2.55 billion across 24 exits a year ago.

Open‑market exits accounted for 77% of total exit value, including Carlyle’s sale of a 10% stake in PNB Housing Finance for $320 million.“PE/VC activity continues to remain subdued as global headwinds and bid‑ask mismatches hamper momentum,” said Vivek Soni, partner and national leader, Private Equity Services, EY India.Soni added that while early signs of recovery, including robust GST collections and a recent RBI rate cut, could revive deal activity later this year, ongoing global tensions and diverging valuations have kept both buyers and sellers cautious.

PE-VC activity (May 2025 vs May 2024 vs April 2025)