Private equity and venture capital investment activity in India saw a moderation in Q1 2026, with a decline in deal value and exits from recent highs. Despite geopolitical tensions, deal volumes remained steady. According to a report by EY and the Indian Venture Capital Association, PE/VC investments totaled $13.1 billion in Q1 2026, marking a 19% year-on-year decrease and a 24% quarter-on-quarter easing.
Volumes remained nearly unchanged with 360 transactions in Q1 2026 compared to 366 in the previous year. Vivek Soni, Partner and National Leader, Private Equity Services, mentioned a 1% month-on-month rise in volumes from 358 deals in Q4 2025. Global sentiments, geopolitical tensions, and high crude oil prices have contributed to a cautious environment for PE/VC activity.
Large transactions continued to dominate the investment landscape, with 27 large deals amounting to $8.7 billion, representing about two-thirds of the total investment. Buyouts led the deal types with $4.3 billion, followed by growth investments at $4.1 billion and start-up funding at $3.2 billion. Technology attracted the most capital at $2.2 billion, with financial services and real estate following closely at $2 billion and $1.9 billion, respectively.
