PE, VC investments fall sharply to USD 2.4 bn in May
Mumbai, Jun 23 (PTI) Funding by private equity (PE) and venture capital (VC) entities has fallen sharply in India to USD 2.4 billion in May, a report said on Monday.
This is a 68 per cent drop from the USD 7.3 billion recorded in May 2024 and a 53 per cent decline from the USD 5 billion in investments in the preceding month of April, as per the report by industry lobby grouping IVCA and consultancy firm EY.
EY partner Vivek Soni said he has a "cautiously optimistic" outlook on the future.
There are positive domestic signs like robust GST collections, strengthening of the rupee and rate cuts, he said, hoping for a pickup in activity in the second half of the fiscal if there is an easing of global uncertainties and geopolitical conflicts.
A convergence of the "bid-ask spread" between sellers and buyers' valuation expectations is also necessary for the volumes to grow, he said.
By deal volumes, May 2025 witnessed 97 transactions, down 24 per cent on-year from the 128 transactions in May last year and 16 per cent compared with April 2025's 115 deals, the report said.
Startup investments accounted for the largest share of PE/VC activity in May 2025, with USD 1.1 billion deployed, which is a 21 per cent increase in value over the USD 871 million in May 2024.
From the sectoral perspective, financial services led the way in May 2025 with USD 758 billion across 21 deals, followed by real estate with USD 380 million.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
37 minutes ago
- Time of India
Working with suppliers to achieve target of $10-bn sourcing from India: Walmart CEO
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel US-based retail giant Walmart is working with suppliers in India to meet its target of sourcing USD 10-billion goods from India for its operations worldwide, its global CEO Doug McMillon said here on has increased sourcing from India over the years, and it is excited with the progress made, he said."....over the years, you can see how the story is unfolding, and it's really broadening and becoming much more interesting," he December 2020, the Bentonville-headquartered retail giant announced a goal to source USD 10-billion products from India by 2027, aiming to boost exports in apparel, food, toys, and other categories."At the beginning, we were sourcing products here with limited categories, but we were excited to get started... look what's happened in our sourcing business."It's grown a lot, and now we have this goal of getting to USD 10 billion a year, which is a really big number, and together with the supplier community, we're working to achieve that," he who is on a two-day India tour, also had a walk-through here that highlighted Walmart's India growth story, covering exports, digital innovation, building inclusive supply chains and empowering he interacted with some of the sellers, who were trained under its supplier development programme, Walmart Vriddhi On its e-commerce arm Flipkart and digital payments solution PhonePe, McMillon said, "What our teams have done to grow those businesses over the years has been inspiring.""We are really learning a lot from those businesses, the ability to innovate, the ability to move with speed, the ability to serve more and more customers, to develop sellers, to build an e-commerce marketplace, business that has just a really bright future and the chance to create a lot of opportunities for everyone," he PhonePe, McMillon said the financial services businesses, already reaches a lot of people "and helps us make things more efficient easier"."We are very proud of what's happening with the bumblebee business... I'm really excited to hear about the work that's happening with agriculture," he year, Walmart said it had sourced goods worth over USD 30 billion from the Indian market in the last two decades for its global operations. Walmart is in India for over two Global Sourcing set up office in Bengaluru in 2002, enabling Indian manufacturers to export to the US, Canada, Mexico, central America, and the UK, supplying products to Walmart this month, Walmart said it is connecting with one lakh more micro, small, and medium enterprises (MSMEs) in the next three years in its supplier development programme in India, Walmart its Vriddhi initiatives, Walmart is empowering the Indian MSMEs with critical business skills and market access, which has helped them to scale their business sustainably and contribute to India's economic growth in 2019, Walmart Vriddhi has trained over 70,000 MSMEs so far by enabling access to digital commerce, personalised mentorship and strategic by the success of Vriddhi initiatives in India, Walmart has launched similar supplier development initiatives in Mexico (Crece con Walmart) and its home turf, the US (Grow with US).
India.com
an hour ago
- India.com
Big win for Gautam Adani, secures Rs 86209869300 financing from…, to fund construction of…
The Adani Group announced on Tuesday that its airport division has secured $1 billion in funding from global investors to support the construction of the Mumbai International Airport. 'The transaction was led by Apollo-managed funds, with participation from a syndicate of leading institutional investors and insurance companies which included BlackRock-managed funds, Standard Chartered among others, underlining global confidence in India's Infrastructure opportunity and Adani Airports' operating platform,' it said in a statement. Adani Airports Holdings Limited (AAHL), a wholly-owned subsidiary of Adani Enterprises Ltd and India's largest private airport operator, raised USD 1 billion through a project finance structure for its Mumbai International Airport Ltd (MIAL). The transaction involves issuance of USD 750 million notes maturing July 2029 which shall be used for refinancing. The financing structure also includes provision to raise an additional USD 250 million, resulting in total financing of USD 1 billion. 'This framework will provide enhanced financial flexibility for the capital expenditure program of MIAL for development, modernisation, and capacity enhancement,' the company said in a statement. This is India's first investment grade (IG) rated private bond issuance in the airport infrastructure sector. AAHL acquired a majority stake in Mumbai International Airport Limited (MIAL) and also holds the rights to develop and modernize six other airports like Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. Additionally, AAHL is a 74:26 joint venture partner with CIDCO in the Navi Mumbai International Airport project. (With Inputs From PTI)
Mint
an hour ago
- Mint
Ongoing geopolitical tensions not to put significant pressure on rupee, inflation: S&P
New Delhi, Jun 24 (PTI) The ongoing geopolitical tensions are unlikely to put a "significant pressure" on the rupee or inflation as global energy prices are lower than last year, which will limit current account outflows and domestic energy price pressures, S&P Global Ratings said on Tuesday. S&P Global Ratings Economist Vishrut Rana said a key mitigating factor of India is that energy prices are still lower than last year -- Brent crude oil traded at roughly USD 85/barrel a year ago and current prices are still lower. "This will help contain both current account outflows and domestic energy price pressures -- while energy prices may rise moderately, the path of food prices will have a higher impact on inflation. Overall, we do not expect significant pressure on the Indian rupee or inflation," Rana told PTI. Rates of the benchmark Brent crude fell to around USD 69 a barrel after US President Donald Trump announced that Israel and Iran have agreed to a "complete and total ceasefire". Israel and Iran have been at war over the past 12 days with Israeli military strikes, followed by counterstrikes by Iran. US, too, joined the war with military strikes on Iran's three most critical nuclear facilities. India imports more than 85 per cent of its crude oil and roughly half of its natural gas requirement. More than 40 per cent of the oil imports and half of gas imports come from the Middle East. S&P estimates inflation to average 4 per cent in 2025, down from 4.6 per cent in 2024. It forecasts rupee to weaken to 87.5 a dollar by the end of 2025, from 86.6 at 2024-end. The Indian rupee opened at ₹ 86.13 to a dollar in morning trade on Tuesday, up 65 paise over Monday's close. Rana also said heightened risk-aversion in global financial markets due to ongoing geopolitical tensions may cause INR volatility. In addition, higher oil prices may lead to higher current account outflows for India and contribute to a weaker Indian rupee. "However, a key mitigating factor is that energy prices are still lower than last year," Rana added. To a query on the impact of conflict on GDP growth, Rana said the impact on growth prospects for the world is modest for now, but prolonged geopolitical tensions are a risk to growth. On Tuesday, S&P Global Ratings raised India's GDP forecast for the current fiscal year to 6.5 per cent assuming a normal monsoon, lower crude oil prices, and monetary easing.
