India's private equity market rebounds 44 pc in Q4 2025: Report

New Delhi, Jan 13 India’s private equity activity strongly rebounded in the fourth quarter of 2025 with investments touching $3.7 billion, up 44.3 per cent from the previous quarter, a report said on Tuesday.

The report from London Stock Exchange Group (LSEG) said that total equity investments in Q4 touched the highest quarterly level since Q4 2024.

Despite the late‑year surge, full‑year private equity investments eased 23.7 per cent year‑on‑year to $12.1 billion, underscoring the continued impact of a cautious investment environment for much of the year, the report said.

“Although the slowdown in investment activity was broad‑based, technology‑led sectors remained comparatively resilient, continuing to absorb the majority of private equity capital,” said Vianca Sanchez, Analyst, LSEG Deals Intelligence.

Internet‑specific and computer software companies attracted a combined $6.7 billion in 2025, representing more than half of total PE deployment, the report said.

It added that investment in these sectors still moderated 1.9 per cent year‑on‑year, reflecting heightened investment selectivity.

Fundraising was subdued, with Indian private equity fundraising falling to $3.8 billion in 2025, the lowest since 2017, the report said.

Fundraising activity in India remained subdued in 2025, mirroring a broader global slowdown in private equity capital formation.

Cumulative capital raised since 2022 stood at about $28.5 billion, which may support deal activity as investor confidence improves and valuation expectations realign, the report noted.

Another recent report from a business analytics firm projected a stable macroeconomic environment and emphasised that India’s next wave of growth will be led by digitised logistics, trusted data, clean energy, and city vitality rewire productivity.

Emerging sectors like AI, green ports and quick commerce will enhance competitiveness and create inclusive growth opportunities across regions and industries, it said.

The report highlighted the need for crowding in private capital, strengthening human capital, and leveraging policy support to fuel sustainable transformation.

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