New Delhi [India], October 30 (ANI): Private equity (PE) and venture capital (VC) investments in India reached USD 17.1 billion in the third quarter of 2026, marking a 46 per cent increase compared to the USD 11.7 billion recorded in the same period last year.

According to the EY-IVCA monthly PE/VC roundup, the quarterly total also represented a 124 per cent rise from the USD 7.6 billion recorded in the second quarter of 2026. Deal volumes, however, contracted by 9 per cent year-on-year (YoY) to 348 transactions, down from 384 deals in the third quarter of 2025.

Large transactions served as the primary driver of capital deployment during the quarter. Thirty-six large deals contributed USD 13 billion, making up 76 per cent of the overall investment value. The largest transaction was KKR's acquisition of Medicover India for USD 1.4 billion.

Vivek Soni, Partner and National Leader, Private Equity Services, EY India said, 'September 2026 emerged as the strongest month for PE/VC investments this year, driven by the highest number of large deals YTD. It also recorded the highest monthly investment value since May 2024 (USD 7.3 billion in May 2024)'.

Pure-play PE and VC investments marginally declined by 2 per cent YoY to USD 8.5 billion, while investments in real estate and infrastructure expanded by 182 per cent to USD 8.6 billion. Buyouts led by deal type with USD 5.1 billion, followed by start-up funding at USD 4.8 billion. 

By sector, infrastructure led with USD 7.2 billion, followed by healthcare with USD 3.1 billion and real estate with USD 1.4 billion.

PE/VC exits stood at USD 10.4 billion across 113 deals in the quarter, falling 24 per cent YoY. Open market sales dominated realisation activity, accounting for 57 per cent of the total exit value at USD 5.9 billion. Secondary exits generated USD 2.0 billion across 15 deals, while strategic exits totalled USD 1.3 billion.

Soni said, 'While the Indian capital markets have largely consolidated over the past few weeks, the upcoming quarterly earnings season is being closely watched given prevailing inflationary pressures'.

'The recent repo rate hike by the Reserve Bank of India reflects a proactive approach as high crude oil prices persist. Going forward, we expect PE /VC investors to remain cautious and selective and prioritise resilience of future profitability and return on capital,' he added.

3Q2026 Fundraising activity closed at USD 6.4 billion across 32 funds, with the first close of NIIF Infrastructure Fund II at USD 2 billion being the largest. (ANI)