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.

- Country:
- India
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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- India
- private equity
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- finance
- startups
- EY
- IVCA
- financial services
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