PE/VC investments jump 46% to $17.1 billion in Q3 on large deals

Private equity and venture capital (PE/VC) investments in India jumped 46 per cent year-on-year to $17.1 billion in the September quarter, driven largely by a sharp increase in big-ticket deals and investments in infrastructure, according to the latest IVCA-EY report.

Investments were also more than double the $7.6 billion recorded in the June quarter. However, the number of deals fell 9 per cent year-on-year to 348 from 384, as the increase in investment value was concentrated in larger transactions.

The quarter saw 36 large deals, defined as transactions above $100 million, worth $13 billion. These accounted for 76 per cent of overall PE/VC investments, compared with 56 per cent a year earlier. The largest transaction was KKR's $1.4-billion acquisition of Medicover India's hospital business.

The sharp rise was also driven by infrastructure and real estate, with investments in these two asset classes rising 182 per cent year-on-year to $8.6 billion, while pure-play PE/VC investments, excluding the two, slipped 2 per cent to $8.5 billion.

Buyouts were the largest investment category at $5.1 billion, more than five times the $1 billion recorded a year earlier. Start-up investments rose 55 per cent to $4.8 billion, while growth investments were largely flat at $3.5 billion. PIPE investments increased to $2.6 billion, while credit investments fell 54 per cent to $1.2 billion.

Infrastructure was the biggest sector, attracting $7.2 billion, followed by healthcare at $3.1 billion and real estate at $1.4 billion. Together, the three accounted for 69 per cent of investments during the quarter.

September alone recorded $7 billion of investments, the highest monthly figure in 2026 and the highest since May 2024. The month saw 14 large deals worth $5.4 billion, accounting for 77 per cent of investments.

“Going forward, we expect PE/VC investors to remain cautious and selective and prioritize resilience of future profitability and return on capital,” said Vivek Soni, Partner and National Leader, Private Equity Services at EY India.

Exits stood at $10.4 billion across 113 transactions during the quarter. While exit value fell 24 per cent year-on-year, it more than doubled sequentially. Open-market transactions remained the biggest exit route, accounting for $5.9 billion, or 57 per cent of total exit value.

IPOs have also become an increasingly important exit route. India has recorded 290 PE/VC-backed IPOs since 2016, with 217, or nearly three-fourths, coming since 2021. These IPOs have generated $17.1 billion in exits for PE/VC investors over the past five years.

“IPO success is expected to be driven increasingly by profitability and earnings visibility rather than market sentiment and momentum,” Soni said, adding that near-term activity could moderate amid market volatility and compression in mid- and small-cap valuations.

Fundraising stood at $6.4 billion across 32 fundraises, up 36 per cent year-on-year but down 60 per cent sequentially. NIIF Infrastructure Fund II's $2-billion first close was the largest fundraise during the quarter.

Published on October 30, 2026