Sharp Decline in India's Private Equity and Venture Capital Funding

Private equity and venture capital funding in India fell to USD 2.4 billion in May 2025, a significant decrease from previous months and years. Despite challenges, signs of economic optimism remain, with expectations for improved investment activity if global uncertainties ease. Startups dominate the funding landscape.


Devdiscourse News Desk | Mumbai | Updated: 23-06-2025 20:57 IST | Created: 23-06-2025 20:57 IST
Sharp Decline in India's Private Equity and Venture Capital Funding
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India experienced a significant drop in private equity and venture capital funding in May 2025, plummeting to USD 2.4 billion, according to a report by industry body IVCA and consultancy EY.

This figure marks a 68% decrease from May 2024 and a 53% decline compared to the previous month. However, positive domestic indicators such as strong GST collections and efforts to stabilize the rupee could signal a rebound, provided global tensions ease.

Of the transactions, startups attracted the highest investment, followed closely by financial services and real estate sectors. Experts anticipate a recovery if buyer-seller valuation expectations align.

(With inputs from agencies.)

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