India’s private equity and venture capital investments fell 17% to US$36 billion last year from $42.12 billion in 2024 as the focus shifted to smaller sized deals, according to US management consulting firm Bain & Company.
The number of deals rose 10% to around 1,700, indicating that the private equity market in the world’s sixth-largest economy has entered a “more disciplined phase”, the consultancy says in a report on May 14, prepared in collaboration with the India Venture and Alternate Capital Association.
The average ticket size fell to $23 million from around $30 million in 2024, “reflecting a shift toward smaller, more selective investments, according to the report, which noted that transactions below $100 million accounted for around 70% of private equity volumes, up from 50% in 2024.
“This is not a cyclic slowdown; it marks a structural shift in how capital deployed. With large-cap deals constrained by valuation gaps and tighter leverage, investors are pivoting toward mid-sized opportunities where operational value creation can drive returns,” Aditya Shukla, partner and head of the India private equity practice at Bain & Company, says in the report.
“Resilient deal volume alongside smaller ticket sizes reflect a market that is broader, more selective, and increasingly execution led,” he adds.
