Venture investments halve in Apr to USD 2.7 bn as rupee depreciation weighs on sentiment

Venture capital and private equity funds invested USD 2.7 billion across 38 deals in April as the rupee depreciation amid the geopolitical tensions weighed on investor sentiment, a report said on Monday.

The bets were around 50 per cent lower than the values seen in the year-ago period and also the preceding month of March 2026, according to the report by lobby grouping IVCA and consultancy firm EY.

From a number of deals perspective, April 2026 saw 83 transactions, which is a 29-month low, and much lower than 134 in the year-ago period and 131 in March this year, the report said.

''The depreciation of the rupee to around INR 96/USD, coupled with persistently high crude oil and gas prices amid geopolitical tensions, is weighing on foreign investor sentiments,'' EY's partner Vivek Soni said.

The report said the bid-ask spread between investor valuations and seller expectations continues to remain wide, and investors are going slow on dry powder available with PE/VC funds pending clearer signs of sustained economic momentum and some correction in valuations.

''With these headwinds, in our view, the near-term outlook for PE/VC investments remains cautious. However, the medium- to long-term outlook for India continues to be positive, supported by strong macroeconomic fundamentals and its secular long-term growth story,'' Soni said.

The largest deal in April was ICICI Prudential Alternatives investing USD 283 million in two RMZ office assets in Bengaluru and Pune, the report said, adding that there were nine large deals totalling USD 1.7 billion in the month.

More than half of the bets came into the top-three sectors, including real estate at USD 699 million, financial services at USD 440 million and technology with USD 361 million.

The month recorded total fundraising of USD 646 million across six deals, the lowest monthly figure since December 2024, the report added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)