New Delhi: The private equity and venture capital investments in India decreased by 51% in month-on-month basis in value terms, according to EY-IVCA's monthly PE/VC roundup.
The report highlights that April recorded US$2.7 billion in PE/VC investments, marking a 49% year‑on‑year decline from US$5.3 billion in April 2025 and a 51% month-on-month drop compared to US$5.5 billion in March 2026.
It is also the lowest monthly PE/VC investment value in the past 29 months, the report added.
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“Deal activity also weakened, falling to 83 transactions in April 2026, down 38% from 134 deals a year earlier and 37% from 131 deals in March 2026,” Vivek Soni, Partner and National Leader, Private Equity Services, EY said.
Pure‑play PE/VC investments in April 2026 (US$1.8 billion) declined by 23% compared to April 2025 (US$2.3 billion).
Investments in the real estate and infrastructure asset class decreased by 69% to US$929 million in April 2026 from US$3 billion in April 2025.
Compared to March 2026, pure‑play PE/VC investments were down by 53% from US$3.8 billion, while real estate and infrastructure investments declined by 46% from US$1.7 billion.
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In terms of the number of deals, pure‑play investments decreased by 33% year‑on‑year, real estate and infrastructure deal volume was down by 55% year‑on‑year.
In April 2026, growth deals led the PE/VC activity at US$1.4 billion, followed by start-up investments at US$756 million.
From a sector perspective, real estate was the top sector recording US$699 million in investments, followed by financial services (US$440 million).
PE/VC exits stood at US$730 million across 15 deals in April 2026, 18% higher than in April 2025 (US$619 million). Secondary exits accounted for 59% of the total exit value (US$430 million).
The infrastructure sector has remained a top focus for private equity, attracting the highest level of investment over the past five years (since 2021).
It accounted for 17% of total PE/VC investments during this period. Within the sector, renewables attracted the highest investment, followed by roads and highways. Please refer to the spotlight section for more details.
The depreciation of the Indian Rupee to around INR 96/USD, coupled with persistently high crude oil and gas prices amid geopolitical tensions is weighing on foreign investor sentiments.
Corporate Inc.’s Q4 FY26 earnings have so far been mixed and with pump fuel prices and cost of imported goods going up, inflation and interest rate curves are expected to inch northwards.
Further, the bid-ask spread between investor valuations and seller expectations continues to remain wide.
As a result, despite significant dry powder available with PE/VC funds, investors are going slow, seeking clearer signs of sustained economic momentum and some correction in valuations.
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“With these headwinds, in our view the near-term outlook for PE/VC investments remains cautious, However, the medium- to long-term outlook for India continues to be positive, supported by strong macroeconomic fundamentals and its secular long-term growth story,” the report added.
Ends.
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