Key Takeaways
- • PE/VC investment in India reached US$17.1 billion across 348 deals in 3Q2026, up 46% year-on-year from US$11.7 billion in 3Q2025 but down 9% in deal count from 384, according to the EY-IVCA report.
- • Buyout investments led deal-type activity at US$5.1 billion, followed by start-ups at US$4.8 billion, while infrastructure was the top sector at US$7.2 billion, ahead of healthcare at US$3.1 billion.
- • Large deals (36 deals totaling US$13 billion) accounted for 76% of quarterly PE/VC investment, with KKR's US$1.4 billion acquisition of Medicover India the largest transaction.
- • PE/VC exits fell 24% year-on-year to US$10.4 billion across 113 deals, though open market exits drove 57% of exit value at US$5.9 billion.
- • Fundraising totaled US$6.4 billion across 32 funds, down sharply from US$16.2 billion in 3Q2025, with NIIF Infrastructure Fund II's US$2 billion first close the largest.
Summary
Private equity and venture capital investment in India reached US$17.1 billion in the third quarter of 2026, a 46% year-on-year increase from US$11.7 billion in 3Q2025 and a 124% quarter-on-quarter rise from US$7.6 billion in 2Q2026, according to the EY-IVCA PE/VC report released on 30 October 2026. Deal count decreased to 348 from 384 a year earlier, a 9% decline, though it rose 44% from 241 deals in the prior quarter. September 2026 was the strongest month of the year so far at US$7 billion, the highest monthly figure since May 2024 (US$7.3 billion).
Large deals drove the result. The quarter recorded 36 large deals totaling US$13 billion, up 97% from 3Q2025, and accounted for 76% of total investment. KKR's acquisition of Medicover India for US$1.4 billion was the largest transaction. By deal type, buyouts reached US$5.1 billion, compared with US$1 billion a year earlier, while start-up investments rose 55% to US$4.8 billion. Growth investments were roughly flat at US$3.5 billion, PIPE investments rose to US$2.6 billion, and credit deals fell 54% to US$1.2 billion. Pure-play PE/VC investment was US$8.5 billion, down 2% year-on-year, while real estate and infrastructure investment rose 182% to US$8.6 billion.
By sector, infrastructure led with US$7.2 billion, followed by healthcare at US$3.1 billion and real estate at US$1.4 billion, together representing 69% of total investment. EY Partner and National Leader for Private Equity Services Vivek Soni said investors are expected to remain cautious and selective, prioritizing profitability and return on capital amid inflationary pressures and a recent Reserve Bank of India repo rate hike.
Exit activity totaled US$10.4 billion across 113 deals, 24% below 3Q2025's US$13.7 billion but up 107% from 2Q2026. Open market exits accounted for US$5.9 billion, or 57% of exit value. The quarter saw 27 PE-backed IPOs, the most in any quarter, though their value fell to US$1.2 billion from US$8.6 billion a year earlier. The largest exit was Avaada Ventures' US$701 million debt repayment to Brookfield Renewable. Financial services led exits by sector at US$2.8 billion.
Fundraising totaled US$6.4 billion across 32 funds, compared with US$16.2 billion in 3Q2025 and US$4.7 billion in 2Q2026. The largest was NIIF Infrastructure Fund II's US$2 billion first close, backed by the Government of India and institutional investors. Looking ahead, the report says near-term IPO activity may be moderate given market volatility and mid- and small-cap multiple compression, though the long-term outlook remains positive.
Large deals drove the result. The quarter recorded 36 large deals totaling US$13 billion, up 97% from 3Q2025, and accounted for 76% of total investment. KKR's acquisition of Medicover India for US$1.4 billion was the largest transaction. By deal type, buyouts reached US$5.1 billion, compared with US$1 billion a year earlier, while start-up investments rose 55% to US$4.8 billion. Growth investments were roughly flat at US$3.5 billion, PIPE investments rose to US$2.6 billion, and credit deals fell 54% to US$1.2 billion. Pure-play PE/VC investment was US$8.5 billion, down 2% year-on-year, while real estate and infrastructure investment rose 182% to US$8.6 billion.
By sector, infrastructure led with US$7.2 billion, followed by healthcare at US$3.1 billion and real estate at US$1.4 billion, together representing 69% of total investment. EY Partner and National Leader for Private Equity Services Vivek Soni said investors are expected to remain cautious and selective, prioritizing profitability and return on capital amid inflationary pressures and a recent Reserve Bank of India repo rate hike.
Exit activity totaled US$10.4 billion across 113 deals, 24% below 3Q2025's US$13.7 billion but up 107% from 2Q2026. Open market exits accounted for US$5.9 billion, or 57% of exit value. The quarter saw 27 PE-backed IPOs, the most in any quarter, though their value fell to US$1.2 billion from US$8.6 billion a year earlier. The largest exit was Avaada Ventures' US$701 million debt repayment to Brookfield Renewable. Financial services led exits by sector at US$2.8 billion.
Fundraising totaled US$6.4 billion across 32 funds, compared with US$16.2 billion in 3Q2025 and US$4.7 billion in 2Q2026. The largest was NIIF Infrastructure Fund II's US$2 billion first close, backed by the Government of India and institutional investors. Looking ahead, the report says near-term IPO activity may be moderate given market volatility and mid- and small-cap multiple compression, though the long-term outlook remains positive.
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