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India's private equity and venture capital (PE-VC) investments rebounded in 2024, reaching USD 43 billion across 1,600 deals-a 27% rise in activity over 2023, according to the IVCA-EY monthly roundup. While still below 2021-22 peaks, it marked the highest deal volume since 2019. Infrastructure deals surged, doubling to USD 12.4 billion and accounting for 29% of total value. Healthcare and tech drew 30% of capital, with healthcare alone attracting USD 5.6 billion. Early-stage VC deals made up 55% of VC activity. Though buyouts fell and public exits declined, investor sentiment improved, pointing to cautious optimism and stronger momentum heading into 2025.
According to the IVCA-EY monthly PE/VC roundup, private equity and venture capital (PE-VC) investments in India saw a robust recovery in 2024, totaling USD 43 billion across roughly 1,600 transactions. This signals a revival after two challenging years triggered by the Covid-19 pandemic, inflation concerns in 2022, and a major market realignment in 2023. Advertisement
Although the investment value remains below the peak years of 2021 and 2022, the year 2024 saw the highest volume of deals since 2019. Deal activity rose by 27% compared to 2023, indicating improved investor sentiment. Sectors such as healthcare, infrastructure, and technology witnessed significant interest, with investments spread across both early-stage and mature companies.
Buyout deals, once the mainstay of large PE investments, saw a 35% decline to USD 8.1 billion in 2024. Meanwhile, infrastructure-focused deals doubled to USD 12.4 billion, making up 29% of the total deal value?an all-time high for the segment. EY also highlighted the rising share of healthcare and technology sectors, which together attracted 30% of the year's capital flow.
The healthcare sector was especially prominent, receiving USD 5.6 billion in funding, with technology following closely at USD 4.9 billion. Fintech and edtech remained key VC targets, though investments in those areas have become more selective.
In the venture capital space, early-stage funding accounted for 55% of total VC deal volume. The number of VC deals grew by 31% to 1,186 in 2024. Nevertheless, the total capital raised by VC funds remained steady at USD 9.9 billion, showing investors' cautious optimism despite a volatile global economic climate.
The year also saw several significant exits, with public market exits witnessing a sharp decline of 58%, largely due to unfavourable secondary market conditions. Strategic exits and buybacks, however, provided a buffer.
Despite a dip in average deal size, the rise in deal volume points to growing confidence in India's economic prospects. With infrastructure and early-stage VC deals gaining traction, the outlook remains cautiously optimistic for 2025.
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