India's PE and VC fundraises hit record $11.3 billion in May: Report
New Delhi, June 30
India recorded its highest-ever monthly private equity and venture capital fundraises in May amid geopolitical uncertainties, according to a report released on Tuesday.
The report from EY-IVCA showed that total fundraising surged to a record $11.3 billion across 10 funds during the month, up from $646 million raised across six funds in April and $3 billion across 12 funds in May last year.
The largest fundraiser during the month raised $10.5 billion, including around $9.1 billion in external commitments, exceeding its original target of $7 billion.
However, PE/VC was at $2.1 billion in May, and the number of deals came to 76.
Pure-play PE/VC investments stood at $1.5 billion, while investments in the real estate and infrastructure segment declined 42 per cent from April and plunged 83 per cent compared to May 2025.
Buyout transactions led investment activity during the month at $840 million, followed by growth investments worth $560 million.
Vivek Soni, Partner and National Leader, Private Equity Services, EY, said easing crude oil prices, a relatively stable rupee and supportive measures by the government and the Reserve Bank of India are expected to improve investor confidence.
"India's underlying macroeconomic fundamentals remain strong as reflected in continuing growth in consumer demand and service exports and digitisation of the economy. We remain optimistic that PE/VC deal activity will regain momentum as global uncertainties begin to ease," he said.
In addition, financial services emerged as the top sector, attracting $402 million in investments, followed by e-commerce ($312 million) and infrastructure ($300 million).
PE/VC exits remained robust during the month, rising 162 per cent year-on-year to $2.7 billion across 14 deals. Strategic exits accounted for 52 per cent of the total exit value.
Geopolitical tensions, currency volatility and valuation differences between buyers and sellers weighed on investment activity during April and May, leading to slower deal closures, the report said.
— IANS
Reader Comments
The $10.5 billion fundraise shows global confidence in India's story. Unlike many other emerging markets, our macroeconomic fundamentals are solid – digitisation, consumer demand, services exports. But 42% drop in real estate investment? Realty sector needs policy support.
Record fundraising but deal volumes down? Something doesn't add up. Big funds closing while smaller ones struggle – typical consolidation phase. Hope this isn't another 2021 bubble where everyone piles in and waits for exits. Need more transparency in valuations.
Financial services getting $402 million is reassuring – our fintech and banking space is resilient. But a 162% jump in exits makes me wonder if investors are cashing out too early. We need more long-term capital for infrastructure and manufacturing, not just short-term gains.
Amazing record! But seriously, when will the common person see benefits? Startups get funded, but jobs for freshers are still scarce. And infrastructure investments dropping 83% year-on-year is alarming – we need bridges and better transport, not just e-commerce unicorns.
The EY guy sounds optimistic, but currency volatility and valuation differences are real headaches. Rupee stability is key – if that wobbles, all this fundraising could get tricky. Still, India shining while global uncertainties persist is a good sign. 🇮🇳
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