West Asia conflict hits PE-VC funding in Q1 of CY2026

CHENNAI : The ongoing West Asia conflict has become a contributing factor in stemming the growth of private equity and venture capital (PE-VC) investments in India.PE-VC investments plunged 22% in the first quarter (Jan–March) of the current calendar year (CY2026) to $9.1 billion, compared with $11.7 billion during the corresponding quarter last year, data released by research firm Venture Intelligence on Wednesday showed.

Investments also declined by 19% ($900 million) in March to $3.8 billion, compared with $4.7 billion in the same month of CY2025. The number of mega deals ($100 million and above) declined from 29 in Q1 CY2025 to 17 in the Jan–March period this year. PE-VC deals exclude those from the real estate sector.