India PE/VC Investments Reach $4.1 Billion in July as Fundraising Hits Record $23.7 Billion in 2026

India’s private equity and venture capital (PE/VC) ecosystem experienced a strong start to the second half of 2026, with investments climbing 52 per cent month-on-month to USD 4.1 billion in July across 111 deals. According to the latest EY-IVCA PE/VC Roundup, this follows USD 2.7 billion deployed across 80 deals in June, making July the second-highest monthly investment value recorded in 2026.

On a year-on-year basis, investment value increased by 3 per cent compared to USD 4 billion in July 2025, although the total number of deals declined by 7 per cent from 119. Vivek Soni, Partner and National Leader for Private Equity Services at EY India, noted that July's performance reflects resilience despite broader macroeconomic challenges.

Large transactions formed a major component of the month's activity. Ten large deals worth USD 2.8 billion accounted for 68 per cent of total PE/VC investments in July. The single largest deal recorded during the month was Brookfield’s USD 600 million investment in Lumara.

In terms of deal segments, buyouts led the market at USD 1.4 billion, marking a 176 per cent increase from USD 511 million in July 2025. Credit investments followed at USD 880 million, while growth investments stood at USD 817 million. Start-up investments reached USD 805 million, registering a 90 per cent year-on-year increase.

Sector-wise, infrastructure emerged as the leading recipient, attracting USD 1.5 billion. Financial services followed with USD 649 million, and food and agriculture drew USD 335 million. Together, these three sectors accounted for 61 per cent of overall PE/VC investments in July. Combined investments in infrastructure and real estate rose 148 per cent year-on-year to reach USD 1.8 billion.

The fundraising environment remained robust, with PE/VC funds raising USD 23.7 billion across 56 fundraises in 2026 so far. This marks the strongest year for fundraising on record with five months still remaining in the year. Bain Capital’s USD 10.5 billion fund contributed significantly, accounting for 44 per cent of the total capital raised during the period. Other notable fundraises included USD 3.2 billion by NIIF, USD 2.7 billion by Tiger Global, and USD 2.2 billion by ChrysCapital.

Data shows that PE/VC funds have raised an aggregate USD 135.8 billion across 781 fundraises since 2016, with nearly 72 per cent of that total capital secured since 2021. Industry participants expect the availability of dry powder to continue supporting deal flow.

Conversely, exit activity slowed during the month. July recorded 17 exits worth USD 1.6 billion, representing an 83 per cent decline from USD 9.2 billion in July 2025. Secondary exits accounted for USD 808 million, or 52 per cent of total exit value. The largest exit during the month was NIIF and others selling their 100 per cent stake in Aseem Infrastructure Finance to TPG and GIC for USD 521 million.

Soni pointed out that the investment momentum was supported by stable monetary policy and stronger-than-expected Q1FY27 corporate earnings, which reinforced investor confidence despite geopolitical uncertainties and cautious market conditions.

"The latest EY-IVCA data highlights strong underlying confidence in the Indian market, particularly driven by large infrastructure deals and robust fundraising led by global funds. While exit values saw a temporary decline compared to the previous year, the accumulation of dry powder and steady macroeconomic fundamentals indicate that capital deployment will remain active. Startups and established businesses alike should focus on strong governance and sustainable growth to attract this available capital." — Dr. Shishir Gupta, Founder & CEO, StartupLanes