PE-VC investments in India plunge 43% in Q2 2025 to $5.3 bn; IT and BFSI lead deal flow

Private equity–venture capital (PE-VC) firms invested over $5.3 billion across 248 deals in Indian companies during Q2 2025, a 43% fall over the $9.3 billion across 275 deals invested in the same period during 2024, according to the latest data from market intelligence company Venture Intelligence.

These figures exclude PE investments in real estate.

The fall in deal value is also similar when compared to the immediate previous quarter (Jan-Mar 2025), which witnessed $9.6 billion being invested across 271 deals. Deal volumes in Q2’25 also decreased by 10% compared to Q2’24 and 8% compared to the immediate previous quarter.

The latest quarterly numbers take the PE-VC investment figures for the first 6 months of 2025 to $14.9 billion across 519 deals, which is 10% lower compared to the same period in 2024, when $16.6 billion was invested across 542 deals.

Q2’25 witnessed 12 mega deals of over $100 million plus rounds worth $3 billion, compared to 25 such investments worth $6.6 billion in Q2’24 and 21 such deals (worth $6.9 billion) in the immediate previous quarter.

The largest PE-VC investment in Q2’25 was the $878 million investment in a publicly listed IDFC FIRST Bank by Warburg Pincus and ADIA. Goldman Sachs investing $600 million in Jubilant Bhartia Group (to support the acquisition of Coke’s India bottling unit) was the second biggest deal of the quarter.

This was followed by $202 million investment in personal finance unicorn Groww by GIC and Iconiq Capital. The $200 million investment in hyperlocal logistics unicorn Porter by Kedaara Capital, Vitruvian Partners and Wellington Management was the fourth largest deal. The $175 million investment in animal pharma player Felix Pharmaceuticals by Advent International and a similar amount in IKF Finance by Motilal Oswal Alternates, Norwest and other investors completed the top five investments for the period.

Led by the $200 million investment led by GIC and Iconiq Capital in Groww, IT & ITES emerged as the top industry for the quarter by attracting $1.8 billion across 134 deals. The Groww investment was followed by $200 million investment in logistics tech company Porter and a $120 million investment in e-commerce groceries unicorn Jumbotail (by SC Ventures and Invus Group).

The BFSI industry came in next, attracting $1.34 billion across 16 deals in Q2’25. Deals in the industry were led by the Warburg Pincus led $872 million preferential allotment in IDFC FIRST Bank. This was followed by the $175 million equity in IKF Finance and the $94 million rights issue of  Fusion Microfinance (by Warburg Pincus and Creation Investments).