PE/VC Investments For May 2025 Show Decline in Value
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Private equity and venture capital (PE/VC) investments in India declined by 53 per cent in May 2025 compared to April 2025 in value terms, according to an EY-IVCA report.
Vivek Soni, Partner and National Leader, Private Equity Services, EY said, "May 2025 recorded US$2.4 billion in PE/VC investments, 68 per cent lower than investments in May 2024 and 53 per cent lower than in April 2025. The number of deals in May 2025 was 24 per cent lower year-on-year."
Soni added that in May 2025, start-up investment deals emerged as the highest at USD 1.1 billion, followed by growth investments at USD 0.7 billion and from a sector point of view, financial services was the top sector in May 2025, recording USD 758 million in investments, followed by real estate at USD 380 million.
PE/VC investments in May 2025 totalled USD 2.4 billion, 68 per cent lower than the USD 7.3 billion recorded in May 2024. This was also 53 per cent lower than the USD 5 billion recorded in April 2025. The number of deals in May 2025 declined by 24 per cent year-on-year, with 97 deals compared to 128 in May 2024, and 16 per cent compared to April 2025, with 115 deals, according to the recent EY-IVCA report.
The report further states that start-up investments accounted for the largest share of PE/VC activity in May 2025, with US$1.1 billion deployed, which is a 21 per cent increase in value over May 2024 (USD 871 million).
Growth investments ranked second, with USD 710 million invested in May 2025, down 71 per cent from USD 2.5 billion in May 2024. Credit investments reached USD 319 million, marking a 77 per cent year-on-year decrease (USD 1.4 billion in May 2024). Private investment in public equity (PIPE) investments totaled US$184 million, 38 per cent lower than May 2024 (USD 299 million). Buyout investments were the smallest segment at US$88 million, representing a 96 per cent decline from USD 2.3 billion in May 2024.
"PE/VC activity continues to remain subdued, as reflected in the limited deal flow and reduction in large deals above USD100 million. Heightened geopolitical tensions, US tariff policy, and other external headwinds have dampened investor sentiment, resulting in a cautious and wait-and-watch approach. Further, the bid-ask spread between seller expectations and buyer valuations has not converged meaningfully as yet, dampening PE/VC investment activity," said Soni in the report.
Companies in the financial services sector led the way in May in terms of funding with USD 758 billion across 21 deals, followed by real estate with USD 380 million. These two sectors accounted for 48 per cent of overall PE/VC investments.
In terms of exits, May 2025 recorded 18 exits worth USD 1 billion, compared to USD 2.6 billion across 24 exits in May 2024 and USD 619 million across 16 exits in April 2025. The largest exit recorded during the month was Carlyle's sale of its 10 per cent stake in PNB Housing Finance for USD 320 million.
The month recorded a total fundraise of USD 3 billion, compared to USD 608 million in May 2024 and USD 1.1 billion in April 2025. Quadria Capital, a healthcare-focused firm, raised USD 1.1 billion, intending to build a diversified portfolio of up to 10 market-leading companies, acquiring minority and majority stakes.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
While AI wipes out entry-level roles, OpenAI CEO Sam Altman says it's actually ‘the most exciting time to be starting out one's career'
Billionaire OpenAI CEO Sam Altman has a message for new Gen Z graduates struggling to gain a footing in the entry-level job market: 'This is probably the most exciting time to be starting out one's career, maybe ever.' But as the class of 2025 scrolls through LinkedIn for new postings, they're facing a tougher reality—AI has stolen most of their opportunities to kick-start their nine-to-fives. In what seems like a dumpster fire of an early career job market for Gen Z—filled with ghost jobs and AI agents—Sam Altman said it's actually 'the most exciting time to be starting out one's career, maybe ever.' 'I think that [a] 25-year-old in Mumbai can probably do more than any previous 25-year-old in history could,' Altman said on an episode of the People by WTF podcast with Nikhil Kamath. 'I felt the same way when I was 25, and the tools then were not as amazing as the tools we have now … A 25-year-old then could do things that no 25-year-old in history before would have been able to, and now that's happening in a huge way.' But Gen Z isn't experiencing the same exciting job market as Altman describes. Entry-level positions are decreasing for ambitious, fresh-faced graduates, as employers expect rookies to come in fully skilled. ChatGPT and AI agents are taking over junior staffers' beginner skills that Gen Zers use to kick-start their journey up the corporate ladder, and the dream of landing a six-figure tech job after college is becoming a distant reality. Some Gen Zers are even seeking their first jobs at Chipotle instead. As a result of skyrocketing tuition costs and a depressing white-collar job market, Gen Z's situation is so dire that 4.3 million young people are now NEETs: not in education, employment, or training. Altman even says he's envious of Gen Z's career options today Even though many young job-seekers are in despair, the tech leader said he's envious of young people because his early career jobs will look 'boring' by comparison. Comparatively, he said, Gen Z will be exploring the solar system and lock down jobs with sky-high salaries. 'If I were 22 right now and graduating college, I would feel like the luckiest kid in all of history,' he added. The billionaire cofounder compared the current AI revolution to how computers changed the world of work when he was growing up. 'People are now limited only by the quality and creativity of their ideas,' the OpenAI CEO said, adding that advances in AI are transforming programming, accelerating scientific discovery, and enabling entirely new kinds of software. But still, in a job market where the first rung of the ladder is disappearing thanks to AI, Altman's optimism is a reminder that Gen Z's success will be determined by how they integrate the tools into their next role. The split of tech founders on AI Altman isn't alone in his optimism about AI. Billionaire Microsoft cofounder Bill Gates said using AI to improve productivity in the workplace could open up more jobs in the future, despite there being some career 'dislocation' for entry-level graduates. In addition, AMD CEO Lisa Su doesn't believe AI is out to cause massive job losses, but admits anxiety around the technology's innovation is a natural feeling. On the flip side, other tech leaders have warned of AI's threat to entry-level roles and the white-collar job market altogether. Anthropic CEO Dario Amodei said AI could wipe out roughly 50% of all entry-level white-collar jobs within five years, causing unemployment to spike as high as 20%. LinkedIn's chief economic opportunity officer Aneesh Raman also echoed that sentiment. Raman said that AI is increasingly threatening the types of jobs that historically have served as stepping stones for young workers who are just beginning their careers. 'While the technology sector is feeling the first waves of change, reflecting AI's mass adoption in this field, the erosion of traditional entry-level tasks is expected to play out in fields like finance, travel, food, and professional services, too,' he said. This story was originally featured on Solve the daily Crossword
Yahoo
3 hours ago
- Yahoo
BHP Group Limited (BHP) Part of Industry Consortium Assessing Development of CCUS Hubs Across Asia
BHP Group Limited (NYSE:BHP) is among the 12 Best Australian Stocks to Buy Right Now. On August 11, the company announced that it would be part of an industry consortium to assess the development of Carbon Capture, Utilisation and Storage (CCUS) hubs across Asia. A close up of the hand of a financial analyst, holding a copy of a report from a rating agency. The consortium will comprise leading steelmakers, including ArcelorMittal Nippon Steel India, Hyundai Steel Company, JSW Steel, and value chain players BHP Group Limited (NYSE:BHP), Chevron, and Mitsui & Co., Ltd. The first of its kind industry-led study in Asia will investigate the commercial and technical pathways to utilising CCUS in hard-to-abate sectors across the continent. According to BHP Group Limited (NYSE:BHP)'s press release, the research will focus on the potential for large-scale projects that could store or repurpose captured CO2. The study will also seek applications for the use of captured CO2 in industrial processes or its transportation to Asia or Northern Australia through pipeline or shipping. The research will conclude in 2026 and is open to additional members wanting to join and contribute to the study. Dr Ben Ellis, Vice President of Marketing Sustainability at BHP Group Limited (NYSE:BHP) shared the following remarks on the announcement of the consortium: 'BHP is committed to supporting our steelmaking customers on their journey to decarbonise the more than 1 billion tonnes of production a year in Asia coming from blast furnace capacity that is relatively early in its production life, it's important for industry to progress technologies to decarbonise existing steelmaking assets while new commercial pathways to decarbonise steelmaking are developed over time. While we acknowledge the potential of BHP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 11 Best Large Cap Defense Stocks to Buy According to Analysts and 10 Best Low Priced Defense Stocks to Buy Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 hours ago
- Yahoo
US cancels India trade talks scheduled for August, NDTV Profit says
(Reuters) -A planned visit by U.S. trade negotiators to New Delhi from August 25-29 has been canceled, delaying talks on a proposed bilateral trade agreement, Indian business and financial news network NDTV Profit reported on Saturday, citing people familiar with the matter. The current round of negotiations for the proposed bilateral trade agreement is now likely to be deferred to another date, the report said, dashing hopes of some relief before the Aug. 27 deadline for the additional tariff on Indian goods kicks in. Reuters could not immediately verify the report. Earlier this month, U.S. President Donald Trump imposed an additional 25% tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations. The new import tax, which will come into effect from Aug 27, will raise duties on some Indian exports to as high as 50% - among the highest levied on any U.S. trading partner. Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases. India's Foreign Ministry has said the country is being unfairly singled out for buying Russian oil while the United States and European Union continue to purchase goods from Russia. Melden Sie sich an, um Ihr Portfolio aufzurufen.
