India PE/VC Investment Falls to $2.4B in May

Mumbai, Jun 23 (PTI) Funding by private equity (PE) and venture capital (VC) entities has fallen sharply in India to USD 2.4 billion in May, a report said on Monday.

This is a 68 per cent drop from the USD 7.3 billion recorded in May 2024 and a 53 per cent decline from the USD 5 billion in investments in the preceding month of April, as per the report by industry lobby grouping IVCA and consultancy firm EY.

EY partner Vivek Soni said he has a "cautiously optimistic" outlook on the future.

There are positive domestic signs like robust GST collections, strengthening of the rupee and rate cuts, he said, hoping for a pickup in activity in the second half of the fiscal if there is an easing of global uncertainties and geopolitical conflicts.

A convergence of the "bid-ask spread" between sellers and buyers' valuation expectations is also necessary for the volumes to grow, he said.

By deal volumes, May 2025 witnessed 97 transactions, down 24 per cent on-year from the 128 transactions in May last year and 16 per cent compared with April 2025's 115 deals, the report said.

Startup investments accounted for the largest share of PE/VC activity in May 2025, with USD 1.1 billion deployed, which is a 21 per cent increase in value over the USD 871 million in May 2024.

From the sectoral perspective, financial services led the way in May 2025 with USD 758 billion across 21 deals, followed by real estate with USD 380 million.