
PE/VC Investments Face Slump in April, Strong Exits Expected in Second Half of 2025
Private equity and venture capital (PE/VC) investments in India declined by 20 per cent in April 2025 compared to March 2025 in value terms, according to an EY-IVCA monthly PE/VC roundup.
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Private equity and venture capital (PE/VC) investments in India declined by 20 per cent in April 2025 compared to March 2025 in value terms, according to an EY-IVCA monthly PE/VC roundup.
Vivek Soni, Partner and National Leader, Private Equity Services, EY said that April 2025 recorded USD 4.7 billion in PE/VC investments, 6 per cent lower than investments in April 2024 and 20 per cent lower than in March 2025 with the number of deals in April 2025 being 4 per cent lower year-on-year.
"The pure-play PE/VC investments in April 2025 (USD 2 billion) declined by 51 per cent compared to April 2024 (USD 3.9 billion). This was offset by increased investment in the real estate and infrastructure asset class, which saw a growth of 175 per cent year-on-year (US$2.7 billion in April 2025 versus USD 984 million in April 2024). Compared to March 2025, pure-play PE/VC investments declined by 54 per cent (USD 4.2 billion in March 2025), and real estate and infrastructure investments grew by 65 per cent (USD 1.6 billion in March 2025)," said Soni in the report.
Soni added that in terms of the number of deals, pure-play investments declined by 6 per cent, whereas the real estate and infrastructure asset classes grew by 6 per cent year-on-year.
Notably, in April 2025, deals in startup investments emerged as the highest at USD 1.8 billion, followed by credit investments at USD 1.1 billion.
According to the report, the country's retail and consumer sector is undergoing significant transformation, presenting a compelling opportunity for private equity and venture capital investors. Growth is mainly driven by the ongoing digital revolution and technological advancements, with rising urbanization and disposable income.
Ujwal Sutaria, Founder and General Partner at TDV Partners, said that it is encouraging to see the growth in startup investments despite the overall investment decline. This showcases that the "dry powder" that VCs had been sitting on for a while is actually getting deployed now.
"I can see the same across TDV Partners' portfolio companies as well, where many companies are closing their next rounds. The exit scenario was grim due to macro uncertainty, which was reflected in turbulent public markets. As the tariff between countries gets finalised in the coming months," said Sutaria.
"I expect the second half of the year to be stronger for exits. There are a dozen startups that are lined up for IPOs, which will give good liquidity to investors, instilling stronger confidence in the Indian startup ecosystem, bringing in more new capital than before," said Sutaria.
The report said that PE/VC investments in April 2025 totalled USD 4.7 billion, 6 per cent lower than the US$4.9 billion recorded in April 2024. The number was also 20 per cent lower than the USD 5.9 billion recorded in March 2025. The number of deals in April 2025 declined by 4 per cent year-on-year, with 108 deals compared to 113 in April 2024, while remaining consistent with the deal count in March 2025 (108 deals).

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