India Becomes APAC's #2 In Investment Destinations, PE-VC Market Rebounds
PE investments remained steady at USD 29 billion, as funds contended with higher valuations driven by buoyant public markets. Furthermore, India became the Asia-Pacific region's second-largest PE-VC destination with a 20 per cent share of total investment, displaying growing investor confidence in the country's macroeconomic stability.
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After two years of contraction, private equity and venture capital (PE-VC) investments in India recovered in 2024, rebounding close to 9% y-o-y to record USD 43 billion, according to a joint report by Bain & Company and Indian Venture Capital Association (IVCA).
The report said that the resurgence was driven primarily by VC and growth investments, while PE dealmaking held steady.
VC and growth investments surged by approximately 40 per cent, clocking 14 billion, driven by a sharp increase in deal volumes. The number of VC deals rose from 880 in 2023 to 1,270 in 2024, with a 2x jump in consumer tech funding to approximately USD 6 billion.
In contrast, however, PE investments remained steady at USD 29 billion, as funds contended with higher valuations driven by buoyant public markets. Furthermore, India became the Asia-Pacific region's second-largest PE-VC destination with a 20 per cent share of total investment, displaying growing investor confidence in the country's macroeconomic stability.
Karan Agarwal, Director, Wilson & Hughes, said that India's IPO landscape in 2025 reflects a more measured and mature ecosystem.
"We're seeing founders treat the public markets as a long-term partnership, not just an exit. There's a clear shift from chasing sky-high valuations to prioritising governance, profitability, and market fit. For investors, this signals a healthier pipeline of companies that are built to last, not just list. It's a positive sign for India's capital markets and the broader entrepreneurial economy," said Agarwal.
Buyouts also gained significance, accounting for 51 per cent of total PE deal value, up from 37 per cent in 2022. According to the report, funds are increasingly focused on acquiring high-quality assets across sectors to spur broader value creation and deploy capital at scale.
The report also said that the country experienced a record year in domestic fundraising. Kedaara closed its largest-ever fund at USD 1.7 billion in 2024, while ChrysCapital secured USD 2.1 billion this year for the country's largest-ever domestic fund.
Likewise, a growing number of funds with global presence and government-linked investors are upping the ante and their capital commitments to India, reinforcing its position as a premier investment destination in the Asia-Pacific region.
Exit activity in India also surged in 2024, clocking USD 33 billion and growing at 16 per cent year over year as investors capitalized on richly valued public markets to monetize assets, said the report. Exits through public markets became a favourite among investors, increasing from 51 per cent of total exit value in 2023 to approximately 59 per cent in 2024, driven by a rise in IPO activity and block trades.
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