India PE/VC Investments Drop 36% to $20.5B in 1H2026
By Business Desk
India’s Private Equity and Venture Capital investments saw a sharp 36% decline, reaching $20.5 billion in 1H2026, according to an EY-IVCA report. Real estate leads sector investments.
Private Equity and Venture Capital investments in India hit US$20.5 billion across 604 deals during the first half of 2026 (1H2026), according to the latest EY-IVCA report. This marks a significant 36% drop from 1H2025.
The total investment value fell by 36% compared to US$31.8 billion in 1H2025 and 29% from US$29.0 billion in 2H2025. Deal volume also saw an 18% reduction year-on-year.
Investment Breakdown by Type
- Growth investments: US$7.0 billion (111 deals), a 6% year-on-year increase.
- Buyout investments: US$5.4 billion (22 deals), a 12% decline from the previous year.
- Start-up investments: US$5.3 billion (396 deals), a 22% decrease year-on-year.
Real estate led sectoral investments in 1H2026, attracting US$4.1 billion across 41 deals, a 12% increase from 1H2025. The technology sector followed with US$3.1 billion across 101 deals, an 18% decrease.
Top Sectors & Major Deals
- Financial services: US$3.0 billion (84 deals), down 27% year-on-year.
- Largest single deal: Blackstone, Bolt Ventures, and others acquiring Royal Challengers Bengaluru for US$1.8 billion.
PE/VC exits in 1H2026 totaled US$9.4 billion from 95 exits, decreasing 29% from US$13.1 billion in 1H2025 and 53% from US$19.8 billion in 2H2025.
Exit Strategies & Key Transactions
- Open market exits: 44% of total exit value (US$4.1 billion).
- Strategic exits: US$3.4 billion.
- Secondary exits: US$1.0 billion.
- IPOs: US$801 million.
- Largest exit: Macquarie’s sale of its toll road portfolio for US$1.6 billion.
A notable trend is the accelerated PE/VC investment in data centers and allied sectors, which drew approximately US$45.3 billion across 86 deals between 2021 and June 2026. Data centers alone accounted for US$41.9 billion of these investments.
1H2026 marked an all-time high for investment activity in this sector, with the outlook remaining highly favorable due to increasing data consumption and AI workloads in India.
Investor sentiment remained cautious in 1H2026 due to geopolitical tensions, crude oil spikes, and the Indian rupee’s depreciation, making Q2 2026 the slowest quarter for PE/VC investments in six years.
Despite this, the report projects an optimistic mid to long-term outlook, anticipating improved valuation levels and India’s robust growth potential. Total fundraises in 1H2026 reached US$21.2 billion across 48 fundraises.
Major Fundraises
- Largest fundraise: Bain Capital’s US$10.5 billion Asia Fund.