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 Private equity and venture capital (PE/VC) investments in India have surged to their highest levels in a decade, with financial sponsors executing 1,761 deals between January and November this year, a report said on Tuesday.   

The development signals renewed confidence in the country’s long-term growth potential, which surpassed the previous record of 1,726 deals in 2021.

"India has consistently recorded over 1,000 PE/VC deals every year for the past 10 years, underlining the depth and maturity of its investment ecosystem," Equirus Capital said in its report.

Alongside the rise in deal count, investment value has also climbed significantly.

"Calendar year 2025 to date has recorded $34 billion in PE/VC investments—a 54 per cent increase over the $22 billion deployed in 2024," the report noted.

This momentum is attributed not only to more deals but also to the rise in average deal size, which grew from $34.4 million in 2024 to $41.6 million in 2025.

According to the report, the number of PE/VC investments stood at 1,397, 1,364 in 2015 and 2016, respectively. The numbers dropped sharply to 1,073 and 1,031 in 2017 and 2018, respectively. However, the investment picked up momentum in 2019 and 2020 with 1,157 and 1,130 deals, respectively.

"Calendar 2025 has already seen a 50 per cent jump in investments made by PE/VC funds in the first 11 months as compared to the whole of calendar 2024," said Bhavesh Shah, Managing Director and Head Investment Banking, Equirus Capital.

"With large new funds being raised by PE firms on the back of record exits in previous funds, we believe India has shown its resilience as a market that offers financial investors multiple viable routes for exit once they have managed to scale up and grow their investee companies," he added.

Smaller deals continue to dominate activity, with transactions up to $10 million accounting for over 30 per cent of total deal volume over the last five years.

Mid-market deals between $10–25 million and $25–50 million have expanded their share significantly—from over 20 per cent in 2020 to over 40 per cent in 2025 so far, reflecting investor appetite for scalable, early-growth opportunities, the report highlighted.

The IT and consumer discretionary sectors remain the biggest beneficiaries, attracting over 50 per cent of total PE/VC investments in 2025, both by value and volume.

"Their dominance underscores India’s digital transformation and rising domestic consumption," the report highlighted.