India’s PE-VC Market Rebounded to $43B in 2024

After two consecutive years of pullback, India’s private capital markets staged a measured rebound in 2024. PE-VC investments climbed 9% year-on-year to reach $43B, according to Bain & Company’s 2025 India Private Equity Report. But this was not a tide-lifting-all-boats story. The gains came from a narrow band of activity and the underlying deal dynamics suggest a market regaining its footing, not sprinting ahead.

Growth capital and VC led the charge

Venture and growth investments were the engine of 2024’s recovery. Funding in this category surged ~40%, touching $14B. Volume growth was significant as well with 1,270 VC deals in 2024, up from 880 in 2023. This surge was mirrored in sectoral flows, with consumer tech funding witnessing a two-times surge to ~$6B. Names like Zepto, Meesho, and Lenskart led the charge.

This resurgence in VC appetite came despite global macro uncertainty and reflected strong investor conviction in India’s domestic demand, digital enablement, and consumer resilience. Notably, early-stage and mid-stage deals saw more momentum than late-stage ones, indicating a focus on scalable, capital-efficient platforms rather than high-valuation unicorns.

Beyond consumer tech, several other sectors contributed to the recovery. Financial services saw renewed interest in affordable housing finance, MSME lending, and insurance platforms. Healthcare deal volume jumped 80% year-on-year, with activity spread across medtech, providers, and CDMOs. IT/ITeS also saw a breakout year, fueled by large buyouts and strong demand for revenue cycle management (RCM) services. Together, these sectors accounted for a significant share of deal value and helped stabilize the overall market.

Private equity, in contrast, held steady at $29B. High public market valuations, with the Nifty 50 P/E peaking at ~24 in September 2024, created a mismatch between valuation expectations and buyer appetite, slowing deal closures.

That said, the relative steadiness of PE flows, despite ongoing pricing friction, speaks to a disciplined market. Sponsors remained active, but selective, deploying capital in deals underwritten on operating transformation and exit visibility along with entry price.

Control Is Back as buyout deals drove half of PE deal value in 2024

While VC and growth deals powered the rebound in 2024, private equity funds became more disciplined – and more controlling. Buyouts accounted for 51% of PE deal value in 2024, up from 37% in 2022.

This marks a structural shift toward ownership-led investing, driven by the need for operational value creation, tighter underwriting, and strategic platform building. With dry powder accumulating and valuation mismatches persisting, control deals offered funds a clearer path to unlock value.

The report highlights how buyouts were concentrated in sectors like IT/ITeS, healthcare, and infrastructure, sectors where control allows for platform creation, bolt-on execution, and governance uplift. 68% of buyouts in 2024 were under $250M in size, signaling that control is no longer limited to mega-deals, but has moved into the mid-market as well.

India strengthens its regional position

India now accounts for approximately 20% of Asia-Pacific’s private capital flows, strengthening its position as the region’s second-largest PE-VC destination. This gain in share reflects sustained investor confidence in India’s macroeconomic stability, policy continuity, and domestic consumption story. Reflecting this confidence, global investors continued to prioritize India with 87% of the top 30 global GPs active in the country.

Additionally, global investors are continuing to double down. Blackstone is targeting a doubling of its India AUM to $100B, Temasek plans to add $10B to its India portfolio over three years, and Qatar Investment Authority has committed $10B alongside plans to open a local office.

A foundation, not a breakout

India’s rebound was real and measured. While average deal sizes declined by ~20%, overall activity was buoyed by a surge in sub-$25M transactions, even as mid-to-large ticket deals (> $25M) held relatively steady. This points to a market rediscovering its rhythm through smaller, more executable opportunities.

The reduction in average ticket size reflects investor preference for nimble, focused bets with better execution clarity. It also highlights a diversification in deal styles, with a healthy mix of control deals, growth capital, and sector-specific platforms.

In that sense, 2024 laid the groundwork for a healthier cycle ahead and not a euphoric boom. The focus on sector rotation, control-oriented investing, and renewed VC momentum has positioned the market to build steadily, even in a complex macro environment.

Exits added to the momentum

Exits were another bright spot in 2024, with India recording $33B in PE-VC exits, the highest ever. IPOs and block trades contributed 59% of exit value, up from 51% in 2023. Major IPOs included Swiggy, Vishal Mega Mart, and FirstCry. This liquidity window helped boost investor confidence and recycle capital back into new investments, reinforcing the ecosystem’s momentum.

Public markets played a key role, offering sponsors a rare window to monetize mature assets at attractive valuations. At the same time, sponsor-to-sponsor deals and strategic acquisitions added to the diversity of exit modes, reducing dependence on a single path to liquidity.

Looking ahead, the outlook remains cautiously optimistic. Interest rate cuts, consumption revival, and improved public market conditions are expected to support sustained activity. However, funds will continue to favor companies with demonstrated margins, path-to-profitability clarity, and founder alignment.

In short, the rebound may not have lifted every segment equally, but it has set the tone for a more resilient and rational cycle, one where capital meets conviction, and execution matters more than hype.

Zoom out with Why India is the Hottest PE Market in Asia, The New Gold Standard, and DPI is Taking Over as the Ultimate Metric to see what’s driving the surge.

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