India PE/VC Investments Fall to USD 2.7 Bn Across 83 Deals in April 2026: Report

Private equity and venture capital (PE/VC) investments in India’s pure-play segment stood at USD 1.8 billion in April 2026, reflecting a slowdown in investor activity amid a challenging macroeconomic environment. Overall PE/VC investments, including real estate and infrastructure, totaled USD 2.7 billion across 83 deals during the month, indicating a decline in both value and deal volume compared to previous periods.

The data comes from the latest EY-IVCA monthly PE/VC roundup report released by EY in collaboration with Indian Venture and Alternate Capital Association. According to the report, total investments fell 49% year-on-year from USD 5.3 billion in April 2025 and dropped 51% compared to March 2026, when investments stood at USD 5.5 billion. Deal activity also weakened, with the number of transactions declining to 83 from 134 a year earlier and 131 in the previous month.

The report highlights that April 2026 recorded the lowest monthly PE/VC investment value in the past 29 months. Pure-play investments declined 23% year-on-year from USD 2.3 billion, while investments in real estate and infrastructure fell sharply by 69% to USD 929 million. On a month-on-month basis, pure-play investments dropped 53%, and real estate and infrastructure investments were down 46%.

Growth investments emerged as the leading category during the month, accounting for USD 1.4 billion in capital deployment. This marked a 66% increase compared to April 2025, making it the largest segment of PE/VC activity. Startup investments followed, with USD 756 million invested, although this represented a 57% decline from the same period last year. Credit investments saw a steep fall to USD 299 million, down 82% year-on-year, while buyout investments rose to USD 283 million. PIPE deals remained minimal at USD 21 million.

From a sector perspective, real estate attracted the highest investments at USD 699 million, followed by financial services at USD 440 million and technology at USD 361 million. Together, these sectors accounted for more than half of the total PE/VC investments in April 2026.

Vivek Soni noted that investors are proceeding cautiously despite having significant uninvested capital. He pointed to factors such as the depreciation of the Indian rupee to around INR 96 per USD, elevated crude oil and gas prices due to geopolitical tensions, and mixed corporate earnings as key concerns affecting investor sentiment. Rising inflation and interest rates, along with a persistent gap between buyer and seller valuation expectations, have also contributed to slower deal activity.

Large deals continued to account for a substantial share of investments. April 2026 recorded nine large transactions worth USD 1.7 billion, representing 62% of the total investment value. However, this was a decline compared to both April 2025 and March 2026. The largest deal during the month involved ICICI Prudential Alternatives investing USD 283 million in two RMZ office assets located in Bengaluru and Pune.

The infrastructure sector has remained a major focus area for private equity investors over the past five years. Since 2021, the sector has attracted USD 54.2 billion across 435 deals, accounting for 17% of total PE/VC investments. Within infrastructure, renewable energy and roads and highways have been the most active segments, together contributing a significant share of investments.

The sector has also seen a concentration of large deals, with USD 46.8 billion invested across 117 large transactions since 2021. Investors have been drawn to infrastructure due to its stable and predictable returns, long-term cash flow visibility, and multiple exit avenues, including infrastructure investment trusts and strategic sales. Factors such as urbanisation, population growth, and increasing demand for sustainable energy continue to support investment activity in this space.

On the exit front, PE/VC firms recorded exits worth USD 730 million across 15 deals in April 2026, marking an 18% increase compared to the same period last year. Secondary exits dominated, contributing USD 430 million, or 59% of the total exit value. The largest exit involved CapitaLand divesting its stake in International Tech Park Chennai for USD 326 million.

Fundraising activity during the month was also subdued. Total fundraises stood at USD 646 million across six transactions, the lowest monthly figure since December 2024. This represented a 62% decline compared to March 2026 and a 41% drop from April 2025. 

The largest fundraise was by Circulate Capital, which raised USD 220 million for its Asia II Fund aimed at supporting circular economy and recycling businesses in South and Southeast Asia.

Overall, the report suggests a cautious near-term outlook for PE/VC investments in India due to macroeconomic headwinds and valuation challenges, although the medium- to long-term outlook remains supported by strong economic fundamentals.