New Delhi, Nov 28 (IANS) Private equity and venture capital investments in India touched $5.3 billion in October 2025 up 9 per cent month-on-month, driven by a tenfold surge in private investments in public equity (PIPE), a report said on Friday.

Sector wise the strong activity in financial services that recorded $2.9 billion drove the surge followed by e-commerce at $715 million, the joint report from Ernst & Young (EY) and Indian Venture and Alternate Capital Association (IVCA) said.

In October, PIPE deals were the highest for $2.1 billion, up 981 per cent year‑on‑year, while start‑up investments followed with a total of $2 billion posting a 175 per cent increase on-year.

Financial services, e‑commerce and technology, collectively accounted for 77 per cent of monthly investment value.

Vivek Soni, Partner and National Leader, Private Equity Services, EY said that the total number of deals decreased to 102 in October 2025 from 112 deals in October 2024.

The industrial sector is expected to witness strong demand in the coming years, supported by large-scale infrastructure development and government-led capital expenditure programs, the report said.

Further, the ongoing energy transition toward renewables, coupled with a robust demand for defense and automotive products is expected to play a pivotal role in driving growth across industrial products, it noted.

Large transactions accounted for 70 per cent of total monthly investment value, with nine large deals worth $3.7 billion. Pure‑play PE/VC investments up 81 per cent touched $5 billion, the highest in 13 months, while real estate and infrastructure investment were down 83 per cent to $291 million.

The PE/VC landscape in India is set for an active phase, as the Q2 earnings highlighted a mixed corporate outlook. Banking, IT and FMCG remained resilient while commodities and manufacturing faced margin and demand pressures.

“The Bihar election results and potential shifts in US trade policies under the Trump administration could positively impact capital flows and investor sentiment,” the report noted.

–IANS

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