The real estate and infrastructure sectors led the charge, with these industries accounting for 16% of total PE-VC investment
India’s private equity (PE) and venture capital (VC) market has bounced back in 2024, reaching an estimated $43 billion across nearly 1,600 deals, marking a 9% increase from the previous year. The recovery has bolstered India’s standing as Asia-Pacific’s second-largest PE-VC destination, capturing approximately 20% of the region’s total investment. This surge reflects growing investor confidence in the country’s macroeconomic stability and the strengthening of traditional sectors driving the market’s growth.
According to a report by Bain & Company, the country’s PE-VC market growth in 2024 was largely propelled by VC and growth investments. While PE investments held steady at $29 billion, there was a noticeable shift towards buyout deals, which now account for 51% of total PE deal values, up from 37% in 2022. This reflects an increasing strategic focus on securing control positions in high-quality assets across sectors, partly facilitated by record levels of available dry powder (uninvested capital). This trend indicates that buyouts could remain a central part of PE activity as funds continue to seek scalable value-creation opportunities.
The real estate and infrastructure sectors led the charge, with these industries accounting for 16% of total PE-VC investment. This category saw an impressive 70% surge in deal value compared to the previous year. Real estate and infrastructure’s dominant role in the market growth reflects the sector’s rising demand, particularly in urbanizing regions and the increasing need for sustainable infrastructure development.
Other traditional sectors, including IT/ITeS, financial services, and healthcare, also contributed to the uptick in investments. The financial services sector, in particular, witnessed strong growth, with a 25% increase in investments, primarily driven by non-banking financial companies (NBFCs) in affordable housing finance. The sector recorded 14 deals, seven of which were valued at over $100 million. However, other sectors like energy and manufacturing saw more subdued deal activity after strong performances in the previous two years. This was partly attributed to high valuations in the public markets, which created a more competitive and challenging environment for deal closures.
India’s market growth is not just about investments but also about exits. In 2024, India outperformed all other markets in the Asia-Pacific region in terms of exit values, which reached $33 billion, marking a 16% year-over-year growth. As investors increasingly turned to buoyant public markets to exit maturing positions, India’s PE-VC exits grew at a remarkable pace. The country’s growing investor confidence is evident in the exits from both early-stage and mature startups, with many companies finding lucrative opportunities to scale and attract investor interest in public offerings.
This increase in exits is reflective of a broader trend where PE-VC-backed companies in India are maturing and becoming more attractive for investors looking to realize returns. The rise in exit values also mirrors the positive sentiment around India’s financial markets, which continue to exhibit resilience and growth potential, even as global markets face challenges.
While the overall PE-VC market in India continues to expand, there is also an emerging shift toward more mature and established companies, particularly those in the Growth-PE segment. The first two months of 2024 saw a record surge in investments, with Growth-PE companies securing nearly $1.1 billion, a substantial increase from $594 million during the same period in 2023. This surge was mainly driven by large corporates seeking PE-VC investors to fuel their expansion and growth ambitions.
The venture capital landscape, too, is experiencing a significant boost. From January to November 2024, India saw a 14.1% rise in VC investments, reaching $16.77 billion across 888 deals. The number of deals also increased by 21.8%, indicating a robust pipeline of VC activity. Venture capital deals in India also surged in value, with startups attracting larger amounts of capital. This surge in funding reflects improved investor confidence in the country’s entrepreneurial ecosystem and increasing interest in Indian startups.
India’s venture capital market is not only growing in terms of value but is also maintaining a prominent position on the global stage. The country accounted for nearly 10% of the total VC deals globally in January 2025, cementing its place among the top five VC markets worldwide.
The increased focus on green and sustainable initiatives is another noteworthy trend in India’s PE-VC landscape. There has been a notable rise in investments in sectors related to clean energy, green technology, and sustainable infrastructure. This shift aligns with global sustainability goals and reflects the increasing importance of environmental, social, and governance (ESG) factors in investment decisions.
India’s PE-VC market has shown remarkable resilience in 2024, with investments in traditional sectors driving growth and exits hitting record levels. As investor confidence continues to build and sectors like real estate, infrastructure, and financial services lead the charge, India’s position as a key player in the global PE-VC landscape is poised to strengthen further. The ongoing recovery and growth in both venture capital and private equity investments are clear indicators of a thriving and dynamic market that continues to attract both domestic and international investors.
