Deal volumes remain resilient in India in April, early-stage investments up: Report

IANS May 7, 2025 326 views

India's private equity landscape demonstrated remarkable resilience in April 2025 with 139 transactions, maintaining a consistent monthly trend. The standout investment was an $862 million deal by Warburg Pincus and Abu Dhabi Investment Authority in IDFC FIRST Bank. Sector-wise, banking and financial services led in value, while fintech dominated deal volumes. Early-stage investments and infrastructure sectors showed promising growth, signaling continued investor interest despite global economic uncertainties.

"Deal volumes remained resilient, but the sharp dip reflects growing investor caution" - Shanthi Vijetha, Grant Thornton Bharat
New Delhi, May 7: The private equity (PE) landscape in April remained steady in terms of deal volume, clocking 139 transactions — a marginal 1 per cent rise — continuing its consistent monthly trend between 130 to 140 deals, a report showed on Wednesday.

Key Points

1

Warburg Pincus leads $862 million IDFC FIRST Bank investment

2

Banking sector dominates QIP deals at 80%

3

Early-stage investments show strong growth momentum

4

Infrastructure sector sees significant value surge

While no billion-dollar deals were recorded this month — unlike the two in the previous month — investor appetite remained resilient, with six high-value transactions (ranging between $100 million and $999 million) totalling $2.1 billion, according to the Grant Thornton Bharat Dealtracker.

The standout deal was Warburg Pincus and Abu Dhabi Investment Authority’s $862 million investment in IDFC FIRST Bank.

“Deal volumes remained resilient, but the sharp dip in both M&A and PE values reflects growing investor caution on taking large bets. While cross border deals slowed down, domestic mergers and acquisitions (M&A) and PE/VC activity is stable,” said Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.

PE/VCs are focusing on early-stage investments so that they can shape financial performance and drive growth.

“India’s ability to navigate the US tariff conundrum and the response to the recent terror attacks will be critical to drive deal activity in 2025,” she mentioned.

After a lull in IPO activity in March, April 2025 marked a modest revival.

On the Qualified Institutional Placement (QIP) front, five deals were recorded, aggregating to $705 million. The banking and NBFC sector continued to dominate this space, contributing to 80 per cent of the total QIP value by raising $686 million across four transactions.

In April 2025, sector trends reflected a mix of growth and slowdown. Banking and financial services led in value, contributing 28 per cent of the month’s total, while fintech dominated sector volumes with a 52 per cent share.

The retail and consumer sector recorded 23 per cent of total deal volumes — the second-highest since January 2022 — driven early-stage transactions. Infrastructure saw a 40 per cent rise in volume and a 261 per cent surge in value, totalling $651 million.

Manufacturing doubled its activity month-over-month, recording 15 deals worth $503 million, said the report.

Reader Comments

R
Rahul K.
Good to see early-stage investments picking up! This shows confidence in Indian startups despite global uncertainties. The IDFC deal is particularly impressive. Hope this momentum continues through 2025 🇮🇳
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Priya M.
Interesting that fintech dominates volumes while banking leads in value. Shows how digital finance is transforming India's economy. But I wish there was more focus on manufacturing - we need to become self-reliant!
A
Arjun S.
The report mentions US tariffs and security concerns as risks. This is worrying - our policymakers need to ensure stable conditions for investors. At the same time, domestic deals staying strong is a silver lining 👍
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Sneha P.
Infrastructure sector growth of 261% in value is phenomenal! This is exactly what we need for long-term economic development. Hope this translates to better roads, ports and digital infra across India.
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Vikram J.
While the numbers look good, I'm concerned about the "investor caution" mentioned. We've seen too many startups fail after initial hype. Investors should focus on sustainable business models, not just valuation games.
N
Neha T.
The retail sector growth is exciting! With our young population and rising incomes, consumer businesses have huge potential. But companies must remember Indian consumers are value-conscious - premiumization has its limits.

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Tags:
Private Equity India Investment Warburg Pincus IDFC FIRST Bank Grant Thornton Investment Trends PE/VC Activity