India’s private equity and venture capital (PE-VC) sector rebounded in 2024 after two years of muted performance, clocking in $43 billion in investments across nearly 1,600 transactions, a nearly 9% uptick from the previous year. According to Bain & Company’s latest India Private Equity Report 2025, released in partnership with the Indian Venture and Alternate Capital Association (IVCA), the recovery was mainly powered by venture capital and growth investments, even as private equity dealmaking remained stable.
This recovery reinforces India’s standing as the second-largest PE-VC market in the Asia-Pacific region, commanding approximately one-fifth of all regional capital inflows. Investors, encouraged by India’s macroeconomic steadiness, appeared more willing to back long-term growth stories, particularly in traditional sectors such as real estate, infrastructure, financial services, and healthcare.
While PE deal value held steady at around $29 billion, funds found themselves navigating elevated valuations in buoyant public markets, which made negotiations more demanding. In response, there was a notable pivot towards buyout deals, which rose to 51% of total PE value in 2024, up from 37% in 2022. This trend, analysts note, points to a growing strategic inclination among investors to take control positions in high-quality, scalable businesses. Ample dry powder in the market has further enabled this push.
Real estate and infrastructure emerged as the top-performing segment, accounting for 16% of the total PE-VC pie and registering a remarkable 70% jump in deal value over the previous year. Financial services followed closely, notching a 25% gain in investments, driven largely by non-banking financial companies (NBFCs) operating in the affordable housing finance space. This sub-sector alone saw 14 major transactions, of which seven exceeded the $100 million mark.
The healthcare space remained strong, with funding activity rising by 80% in volume. Major deals in medical technology, including investments in Healthium and Appasamy, underscored investor interest in both innovation and scalability. Pharma CDMOs and healthcare providers also continued to attract sustained capital flows.
IT and IT-enabled services witnessed a standout year, with deal value skyrocketing by 300%. Large transactions such as Perficient ($3 billion), Altimetrik ($900 million), and GeBBS ($865 million) dominated headlines, with revenue cycle management emerging as a particularly active vertical.
Exits, often considered a bellwether of market maturity, also hit a record in 2024. India outperformed all other Asia-Pacific markets in this category, with exit values touching $33 billion, a 16% year-on-year increase. The capital markets played a central role, as investors took advantage of strong public sentiment to monetise maturing assets. Public market exits made up 59% of total exit value, up from 51% in the previous year, bolstered by both IPO activity and successful block trades.
The IPO pipeline was particularly robust, with 33 offerings in 2024 compared to 23 in 2023. Consumer-focused businesses accounted for 55% of IPO value, underscoring sustained investor appetite for demand-driven sectors.
On the fund-raising front, Indian managers made notable strides. Kedaara Capital closed its largest fund yet at $1.7 billion, while ChrysCapital reportedly raised a record $2.1 billion. These milestones reflect growing confidence among limited partners in India’s long-term growth narrative.
Looking ahead to 2025, the industry sentiment remains cautiously optimistic. The positive outlook is anchored in strong macroeconomic fundamentals. While challenges persist in navigating high valuations and competitive dealmaking, investors appear well-positioned to tap into India’s evolving growth story.
