According to a recent report, India witnessed a significant rise in private investment activity last year, with deals totaling $60 billion across 1,595 transactions. Growth-stage investments remained strong, reaching $10 billion, with record-high volumes and over 150 additional growth deals since 2023. The share of growth-focused fundraising also hit a five-year high of 29 percent of total funds raised, as highlighted in a joint report by the Indian Venture and Alternate Capital Association (IVCA) and Praxis Global Alliance.
The ‘India Growth Equity Report 2025’ showed that the way out of growth-stage deals is going up. Public market exits now make up 60 percent of all exit value. As we look to 2025, the outlook for growth deals and raising funds stays good. Investors are focusing on maximizing value by engaging more actively with portfolio companies through dedicated operating teams and setting up continuation funds to optimize returns.
Additionally, the report suggests that deal activity will continue to thrive, particularly in consumer apps, SaaS/AI, e-commerce, listing platforms, and the BFSI sector. Rajat Tandon, President of IVCA, stated that
“India’s economic strength and sustained growth make it an attractive destination for both domestic and global investors. From FMCG giants to manufacturing firms, access to patient, long-term capital is essential for scaling operations and driving India’s industrial and economic transformation.”
According to Madhur Singhal, Managing Partner and CEO of Praxis Global Alliance, deal activity and fundraising are expected to maintain strong momentum in 2025, further supporting India’s evolving investment ecosystem.
With a good view of growth-stage investments, funds are focusing on making long-term gains. They are working more with the companies they have shares in and making new funds to boost their profits.
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