India PE/VC Investments Rise 46% to $17.1 Billion in Q3 Driven by Large Deals and Infrastructure

Private equity and venture capital (PE/VC) investments in India climbed 46 per cent year-on-year to $17.1 billion during the September quarter, according to the latest IVCA-EY report. This figure is more than double the $7.6 billion recorded in the June quarter.

Despite the surge in total investment value, the total number of deals fell 9 per cent year-on-year to 348 from 384. This indicates that the capital influx was concentrated in larger transactions rather than a broader distribution of smaller deals.

During the quarter, the market recorded 36 large deals—defined as transactions exceeding $100 million—totaling $13 billion. These large transactions accounted for 76 per cent of overall PE/VC investments, compared with 56 per cent during the same period last year. The single largest transaction of the period was KKR's $1.4-billion acquisition of Medicover India's hospital business.

The overall increase in funding was substantially supported by the infrastructure and real estate sectors. Investments in these two asset classes rose 182 per cent year-on-year to $8.6 billion. In contrast, pure-play PE/VC investments, which exclude infrastructure and real estate, slipped 2 per cent to $8.5 billion.

An analysis of investment categories shows that buyouts were the largest segment at $5.1 billion, marking more than a fivefold increase from $1 billion a year earlier. Start-up investments rose 55 per cent to $4.8 billion, while growth investments remained largely flat at $3.5 billion. Private Investment in Public Equity (PIPE) investments increased to $2.6 billion, whereas credit investments experienced a 54 per cent decline to $1.2 billion.

By sector, infrastructure led the market by attracting $7.2 billion, followed by healthcare at $3.1 billion and real estate at $1.4 billion. Together, these three sectors accounted for 69 per cent of total investments during the quarter. September alone recorded $7 billion of investments, representing the highest monthly figure in 2026 and the highest since May 2024, driven by 14 large deals worth $5.4 billion.

Commenting on the outlook, Vivek Soni, Partner and National Leader for Private Equity Services at EY India, noted that investors are expected to remain cautious and selective, prioritizing the resilience of future profitability and return on capital.

On the exit side, PE/VC exits stood at $10.4 billion across 113 transactions. While total exit value fell 24 per cent year-on-year, it more than doubled sequentially. Open-market transactions served as the primary exit route, contributing $5.9 billion or 57 per cent of the total exit value. Additionally, IPOs have emerged as a significant exit mechanism, with India recording 290 PE/VC-backed IPOs since 2016, generating $17.1 billion in exits over the past five years.

Fundraising activity reached $6.4 billion across 32 fundraises, representing a 36 per cent year-on-year increase but a 60 per cent decline sequentially. The largest fundraise of the quarter was the NIIF Infrastructure Fund II, which secured a $2-billion first close.

"The third-quarter data clearly indicates a shift toward consolidation and large-ticket capital deployment in the Indian market, particularly within infrastructure and healthcare. While overall deal volumes have contracted, the heavy reliance on transactions above $100 million shows that institutional investors are writing larger checks for mature, high-value assets rather than spreading risk across early-stage ventures. Founders and entrepreneurs must recognize that investors are increasingly prioritizing cash flow resilience and fundamental profitability over top-line growth as market selectivity tightens." — Dr. Shishir Gupta, Founder & CEO, StartupLanes