PE-VC investments decline by 10% YoY

Time of India

3 days ago

Chennai: Private Equity - Venture Capital (PE-VC) investments recorded a 10% decrease at $16.8 billion between January and July of the current calendar year (CY2025) against $18.7 billion in the same seven-month period last year.
The investments as on July 31, 2025, exclude those from the real estate sector. Industry experts attribute the dip in investments to global factors such as geopolitical tensions and market uncertainty.
In July this year, PE-VC investments dropped by 11.5% at $1.8 billion when compared with $2 billion during the corresponding July of CY2024, data released by research firm Venture Intelligence on Thursday showed.
Of this, five major deals collectively accounted for more than $1 billion including Partners Group to acquire a majority stake in Infinity Fincorp for Rs 1,950 crore and Abu Dhabi Investment Authority (ADIA) is set to invest $200 million for a 3% stake in the Indian medical device company Meril.
"A key highlight of July's PE investments are the three large buyouts/control transactions of over $200 million each that were announced in the month such as Theobroma, VIP Industries and Infinity Fincorp Solutions.
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Notably, the Theobroma deal marks ChrysCapital's first control transaction in the domestic retail space," Arun Natarajan, founder, Venture Intelligence told TOI.
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While the PE-VC investments fell under $2 billion only once in Jan-July last year, the current year witnessed five out of the seven months not touching the $2 billion mark. "Given how volatile the macro environment has been in 2025, the only way to view private investment markets in India thus far in the year is to view it as a 'glass that is half full'.
Markets - including the IPO markets, for the right companies - have been quite resilient.
With Trump Tariffs now having directly targeted India, we will have to wait and watch out how the impact plays out," he said.
Vivek Kumar, co-founder and CEO, VG Angels — an early age angel investment network — observes that the slowdown was more a short-term reset than a long-term shift. "Investors are simply being more cautious right now. Global factors like ongoing geopolitical tensions, and general market uncertainty have made them take a pause and reassess," he added.