India's PE and VC fundraises more than double to $21.2 billion in Jan-June: Report
New Delhi, July 31
India's private equity and venture capital fundraises more than doubled to $21.2 billion across 48 funds in the first half of 2026, reflecting strong investor confidence despite a slowdown in deal activity, according to a report released on Friday.
A report by EY-IVCA highlighted that total fundraises surged from $10.1 billion in the corresponding period last year and $13 billion in the second half of 2025.
The biggest fundraise during the six-month period was Bain Capital's Asia Fund VI, which raised $10.5 billion, significantly exceeding its original target of $7 billion.
However, PE/VC investment activity remained subdued during H1 2026.
Total investments stood at $20.5 billion, down 36 per cent from $31.8 billion in the year-ago period and 29 per cent lower than $29 billion recorded in the second half of 2025.
The number of deals also declined 18 per cent year-on-year to 604, compared with 734 in H1 2025.
According to Vivek Soni, Partner and National Leader, Private Equity Services at EY, investor sentiment remained cautious amid geopolitical tensions, elevated crude oil prices, depreciation of the Indian rupee against the US dollar and valuation gaps between buyers and sellers, making the second quarter of 2026 the slowest for PE/VC investments in the past six years.
Among sectors, real estate attracted the highest investments at $4.1 billion, followed by technology at $3.1 billion and financial services at $3 billion.
In addition, the report also highlighted strong momentum in India's data centre ecosystem, with investments and commitments in data centres and allied sectors reaching $33.3 billion in H1 2026, driven by growing demand for cloud infrastructure, artificial intelligence and digital services.
The report said improving valuations, supportive government policies and India's long-term growth prospects are expected to create fresh investment opportunities, supporting a recovery in PE/VC activity over the medium to long term despite near-term global uncertainties.
— IANS
Reader Comments
The 36% drop in investments is concerning though. Rupee depreciation and crude prices are making foreign investors cautious. Hope the government addresses these issues quickly - we can't afford to lose momentum when China is slowing down and India has a real chance to attract manufacturing and tech investments.
Bain Capital raising $10.5 billion vs target of $7 billion is a massive vote of confidence! But let's be honest - we need more domestic investors too. Why are our own pension funds and insurance companies not participating more actively in this growth story? The ULIP and mutual fund route is good, but institutional participation needs to increase.
Interesting report. The slowdown in deal activity despite larger fundraises suggests a mismatch between buyer and seller expectations. In the current global environment, investors want bargains but Indian founders still value their companies highly. It's a classic standoff. The medium-term outlook does remain positive though.
Real estate getting the highest investment is no surprise - property rates in metros are sky high and NRIs are pouring money back! But tech at $3.1 billion seems low when we keep hearing about India's startup ecosystem. Maybe the valuation corrections are actually healthy - we were seeing crazy valuations for zero-profit companies in 2024-25.
The data centre investment of $33.3 billion is the real story here! With Jio and Airtel building massive cloud infrastructure, we're setting up India as the digital back office for the world. If we get this right, we could create lakhs of tech jobs beyond just IT services. The future is bright if we play our cards well!
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.