Deal value of private equity and venture capital reaches $11.7 billion in Q3
The total deal value closed by private equity and venture capital in India decreased by 5% in the third quarter of 2025, according to research from EY and the Indian Venture and Alternate Capital Association.
In Q3 of 2025, the number of deals closed by big ticket and early-stage investors totalled 369 deals, up markedly on the same period last year (331 deals). Total deal value was up 20% on the year previous, at $11.7 billion last quarter compared to $9.7 billion last year, but down 5% on the $12.2 billion recorded in Q2 of 2025.
By sector, financial services led with $3.1 billion, up 76% year-on-year. Infrastructure followed with $1.7 billion, down 3% year-on-year, while technology ranked third with $1.3 billion, up 1% year-on-year.
By deal type, growth investments led at $4.1 billion across 80 deals, up 48% from Q3 of 2024 ($2.7 billion across 49 deals). Start-up investments followed with $3.5 billion across 204 deals, a 51% increase from $2.3 billion across 159 deals.
Exits
In terms of exits, Q3 recorded exits worth $13.7 billion, 61% higher than in the same quarter of 2024 and 172% higher than in Q2 of 2025 ($5 billion). In terms of deal count, the last quarter saw 81 exits, up 31% from 62 in Q2 of 2025. According to the report’s authors, the last quarter marked the third-highest quarterly exits on record and the highest since Q2 of 2021 at the height of the global pandemic ($17.5 billion).
Strategic exits led with $8.6 billion across 16 deals, accounting for 63% of total exit value in Q3 of 2025. Open market exits followed with $3.1 billion across 26 deals, down 28% year-on-year from $4.2 billion across 35 deals in Q3 of 2024. Secondary exits totaled $1.7 billion across 22 deals.
IPOs
3Q2025 also saw the highest-ever number of private equity-backed IPOs, generating $369 million across 16 exits, compared to nine IPOs in Q3 of 2024 ($705 million) and four in Q2 of 2025 ($152 million). The largest exit in Q3 of 2025 was Temasek’s sale of a 35% stake in Schneider Electric’s India business for $6.4 billion.
Commenting on the report’s findings, Vivek Soni, Partner and National Leader of Private Equity Services at EY, said: “Activity in private equity and venture capital has been volatile this year, recording a 9% year-on-year decline in year-to-date investments.”
“While certain months – February, April, June, July and September – saw year-on-year growth of 20%, 1%, 7%, 35%, and 30% respectively, overall activity was weighed down by muted performance in the remaining months. This uneven trend highlights the impact of multiple global headwinds, including geopolitical uncertainties.”
Looking ahead at the fourth quarter, Soni said that there are positive signs. “The anticipated benefits of recent GST reforms amplified by the holiday season are expected to reflect in upcoming corporate earnings, potentially boosting market sentiment and hopefully reduce the bid-ask spread between seller expectations and buyer valuations. Progress on the US-India FTA in November could further enhance foreign investor confidence.”
“At EY, we maintain a cautiously optimistic outlook and will look at foreign investment flows into the Indian markets as a leading confidence indicator.”
