India witnessed its highest-ever monthly private equity (PE) and venture capital (VC) fundraises in May amidst geopolitical uncertainties, as per a report by EY-IVCA. Total fundraising soared to a record $11.3 billion across 10 funds in May, a significant increase from previous months. The largest fundraiser in May amassed $10.5 billion, surpassing its initial target of $7 billion with around $9.1 billion in external commitments.
PE/VC investments in May totaled $2.1 billion, with 76 deals taking place. Pure-play PE/VC investments accounted for $1.5 billion, while investments in real estate and infrastructure saw a decline of 42% from April and 83% from May 2025. Buyout transactions dominated investment activity at $840 million, followed by growth investments worth $560 million.
Vivek Soni, Partner and National Leader, Private Equity Services, EY, expressed optimism due to factors like easing crude oil prices, a stable rupee, and supportive government measures. He highlighted the strength of India’s macroeconomic fundamentals, consumer demand growth, service exports, and digital economy. Financial services attracted the most investments at $402 million, with e-commerce and infrastructure following closely.
PE/VC exits in May surged by 162% year-on-year to $2.7 billion across 14 deals, with strategic exits contributing 52% of the total exit value. Geopolitical tensions, currency fluctuations, and valuation disparities between buyers and sellers impacted investment activity during April and May, leading to slower deal closures.
