Archive · 23 Jun 2025
PE/VC Funding in India Drops Sharply in May
In India, companies that invest in other companies (PE/VC) gave out a lot less money in May compared to last year.
Overall, investments dropped significantly, and fewer deals were made.
However, money going into startups actually increased, especially in logistics and finance.
Experts say that the slowdown was because of global events.
Despite less investment, companies that manage funds raised more money than before.
Experts think things might improve if global uncertainties calm down and valuations become more agreeable.
PE/VC funding in India plunged 68% YoY to $2.4 billion in May.
Deal volume decreased by 24% YoY, with only 97 transactions completed.
Start-up investments rose 21% YoY to $1.1 billion, led by the logistics and fintech sectors.
Buyout deals plummeted 96% to $88 million, and credit investments decreased by 77%.
Fundraising activity surged 391% YoY to $3 billion, with large funds focusing on healthcare and infrastructure.
- Who
- Private equity and venture capital firms and startups.
- What
- PE and VC funding in India decreased significantly in May.
- When
- May saw a 68% YoY drop in funding and a 24% decrease in deal volume.
- Where
- India.
- Why
- Due to geopolitical uncertainty, valuation mismatches, and general macroeconomic uncertainty.
Market Downturn Factors
Market Dynamics
Causes of Slowdown
Market Downturn Factors
Geopolitical Tensions, valuation mismatches, and macroeconomic uncertainty suppressed deal activity.
Market Dynamics
N/A
- May 2025 Funding
- $2.4 billion
- May 2025 Funding Drop (YoY)
- 68%
- May 2025 Deal Volume
- 97 transactions
- May 2025 Deal Volume Drop (YoY)
- 24%
- Startup Investment (May 2025)
- $1.1 billion
- Fundraising Activity (YoY)
- 391%