India's PE-VC investments rise to $43 billion

New Delhi

India’s private equity and venture capital (PE-VC) market grew by 9 per cent in 2024, reaching $43 billion across nearly 1,600 deals. This rise marks a recovery and highlights India’s growing investor appeal, making it the second-largest PE-VC market in the Asia-Pacific region, according to a report by Bain & Company.

The growth was mainly driven by venture capital and growth investments, while private equity deals stayed steady at $29 billion. However, higher public market valuations made closing large deals more difficult. There was also a noticeable shift toward buyout deals, which made up 51 per cent of the total PE deal value in 2024—up from 37 per cent in 2022.

Bain's Prabhav Kashyap said this trend shows that investors now want more control over strong companies and are ready to use available capital for high-value opportunities. Real estate and infrastructure sectors led investments, making up 16 per cent of the total and rising 70 per cent from last year.

Financial services also showed strong growth, especially in housing finance through non-banking finance companies (NBFCs), with 14 major deals—seven of them worth over $100 million each. Other sectors like IT, healthcare, and selected traditional industries supported the market, although energy and manufacturing slowed due to high valuations.

India also led the Asia-Pacific in investment exits, hitting a record $33 billion—a 16 per cent rise from last year. Many investors took advantage of strong public markets to exit older investments. The report suggests India’s stable economy and maturing market continue to attract large global funds and long-term investment strategies.