Private equity investments to revive in India in second half of 2025 — Report
Published on Jun 11, 2025
By IANS
- NEW DELHI — Private equity (PE) activity in India is expected to revive in the
second half of 2025 as market valuations stabilise and exit opportunities
improve, according to a report on Wednesday.
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- India recorded 179 deals valued at $4.5 billion in May.
Excluding IPOs and QIPs, the market saw 175 transactions worth $4.2 billion,
reflecting a 17 per cent drop in volumes and a marginal 4 per cent decline in
values compared to April, according to the report by Grant Thornton Bharat.
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- Additionally, the uptick in outbound M&A signals
growing corporate confidence in global expansion and strategic diversification.
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- "May marked a slowdown in overall deal activity due
to muted private equity sentiment. The emergence of two unicorns and an uptick
in Corporate India's outbound deals indicate a promising deal outlook,” said
Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.
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- “Expect deal momentum to build in the second half in the
backdrop of a rejuvenated IPO market,” she mentioned.
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- The Mergers and Acquisitions (M&A) activity in
May remained steady, with 68 deals valued at $2.4 billion, marking a 75 per
cent increase in deal value compared to April, despite a marginal 1 per cent
dip in volumes.
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- Notably, outbound M&A activity saw a sharp rise,
with 15 deals closed versus just two in April, signalling renewed confidence
among Indian corporates to pursue cross-border growth and integration after
nearly a decade.
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- The private equity sector saw a silver lining with the
emergence of two unicorns -- Drools Pet Foods and JSW One Platforms --
reflecting selective investor optimism.
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- Capital markets remained subdued in May, with only two
IPOs raising $0.3 billion -- consistent with the previous month's tepid
activity.
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- Banking and Financial Services continued to dominate deal
values, contributing 42 per cent of the total for the month, led by Sumitomo
Mitsui's $1.6 billion investment in YES Bank.
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- The Retail and Consumer sector maintained strong deal
momentum, driven by early-stage VC activity and large-ticket investments in
fashion retail segments like Citykart's $68 million raise, the report said.
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