Private equity and venture capital (PE-VC) investments in India fell sharply by 43% year-on-year to $5.3 billion in the second quarter of 2025, compared to $9.3 billion in the same period last year. The decline was similarly steep on a sequential basis, with Q1 2025 having recorded $9.6 billion in deal value.
According to data from Venture Intelligence, deal volumes in Q2 2025 stood at 248, reflecting a 10% drop compared to Q2 2024 and an 8% decline from the previous quarter. For the first half of 2025, total PE-VC investments amounted to $14.9 billion—down 10% from the corresponding period in 2024.
The decline in investments in Q2 2025 was largely due to fewer mega deals in the quarter. The quarter recorded just 12 such transactions worth $3 billion, a significant drop from 25 mega deals totaling $6.6 billion in Q2 2024 and 21 deals worth $6.9 billion in Q1 2025.
The largest deal in Q2 was Warburg Pincus and Abu Dhabi Investment Authority’s (ADIA) $878 million investment in a IDFC FIRST Bank. This was followed by Goldman Sachs investing $600 million in Jubilant Bhartia Group, to support the acquisition of Coke’s India bottling unit. Other notable deals included a $202 million investment in discount brokerage firm Groww by GIC and Iconiq Capital, and a $200 million round raised by hyperlocal logistics unicorn Porter from Kedaara Capital, Vitruvian Partners, and Wellington Management. Advent International’s $175 million funding of animal health company Felix Pharmaceuticals, along with a similar-sized investment in IKF Finance by Motilal Oswal Alternates, Norwest, and others, also featured among the top five deals.
The IT & ITES sector emerged as the most active industry in Q2, attracting $1.8 billion across 134 deals. In addition to the Groww and Porter deals, e-commerce player Jumbotail raised $120 million from SC Ventures and Invus Group.The banking, financial services, and insurance (BFSI) sector followed, drawing $1.34 billion through 16 deals. Besides the IDFC FIRST Bank deal, this included the $175 million raised by IKF Finance and a $94 million rights issue by Fusion Microfinance, backed by Warburg Pincus and Creation Investments.