Key Highlights:
- Private
Equity deal value rose 13% even as volumes
fell 16% YoY, reflecting investors’ confidence in larger,
conviction-led transactions. IT, Industrials, and Consumer Staples led
the surge, underscoring faith in scaled, capital-efficient models. - Later-stage
and Pre-IPO rounds gained traction, as
investors favoured scale-ready, profitable models. Angel/Seed activity
declined 35%, showing a maturing shift toward clarity and
near-term growth visibility. - Capital
raised recovered to $8.7 billion, as Limited
Partners (LPs) backed proven and niche managers despite fewer
launches. - Secondary
sales surged 75%, emerging as a strong alternative
liquidity route amid a slower exit environment. Broader exit volumes
fell 25%, highlighting a more adaptive, diversified exit market. - Healthcare
exits jumped 67% in volume and nearly 4x in value, reinforcing its role as a defensive growth sector.
The sector’s strength offset broader weakness in the Consumer
Discretionary and Financials sectors. - M&A
volumes rose 34% and values 53%, supported by
strong domestic and inbound deal momentum. - Inbound deal
value more than doubled, reaffirming India’s appeal as a hub for
strategic growth and consolidation - Late-stage
rounds doubled in share, reflecting continued
investor confidence in scalable, revenue-strong ventures. - While
early-stage volumes fell 31%, the shift indicates a healthier,
sustainability-focused funding cycle.
Mumbai,: 360 ONE, one of India’s leading wealth and asset management firms,
in association with VCCEDGE, today released the ninth edition of the
India Invests (i2) Report for the first half (HY) of FY 2025–26. The report
provides an in-depth overview of India’s private equity (PE), venture
capital (VC), startup, M&A, and exit landscape, highlighting emerging
trends and shifts in investor behaviour.
Despite a broad moderation in deal volumes, India’s
private capital ecosystem displayed resilience and maturity, characterized
by larger, high-conviction investments and selective deployment.
Investors prioritized scalable, capital-efficient businesses while maintaining
confidence in the long-term India growth story.
Private equity deal volumes fell 16% year-on-year,
marking a five-half-year low, but deal value rose 13%, reflecting continued
faith in larger, quality opportunities. Information Technology, Industrials,
and Consumer Staples led value growth, while early-stage investments moderated.
Angel and seed funding declined 35%, even as PE and Pre-IPO rounds gained
share, indicating a shift toward companies closer to profitability.
Fundraising activity softened, with new launches
dropping 63%. However, capital raised recovered to USD 8.7 billion, as LP’s
consolidated commitments to experienced fund managers. On the exit front,
volumes and value fell 25% and 39% respectively, though secondary sales surged
75%, emerging as a vital liquidity avenue. Health Care stood out with
robust exit gains amid broader market caution.
M&A activity posted a strong rebound as deal
volumes rose 34% and values climbed 53% year-on-year, supported by domestic
consolidation and renewed inbound interest. Startup funding touched a five-year
low, though late-stage rounds more than doubled in share, underscoring investor
focus on scale and revenue visibility.
Yatin Shah, Co-founder of 360 ONE and CEO of 360
ONE Wealth, said, “India’s entrepreneurial
energy continues to inspire confidence. Fundraising has become more focused.
Fewer funds were launched, but total capital raised improved as investors
placed trust in experienced managers. And even in a slower exit environment, investors
have found ways to create liquidity. Secondary transactions have become an
important route. The latest edition of India Invests, developed in partnership
with VCCEdge, shows how the focus has moved from rapid expansion to measured,
conviction-based growth.”
Click to download the full report: https://360one.docsend.com/view/hmcgi5r4ryuw47mc
About 360 ONE
360 ONE WAM is among India’s leading wealth and asset
management firms, managing assets worth USD 76 billion.
360 ONE Wealth specialises in empowering
ultra-high-net-worth and high-net-worth families to manage, grow, and optimise
their wealth. It also focuses on legacy planning, ensuring that wealth is
preserved and seamlessly transferred across generations.
360 ONE Asset offers investment solutions to clients
worldwide looking to invest in Indian markets across asset classes. Its
capabilities cover a wide spectrum of asset classes, including public equities,
private equity, private credit and real assets, each managed by a seasoned team
of investment professionals.
360 ONE Capital, formerly known as B&K Securities,
provides full-service capital market offerings to institutional investors,
besides corporate treasury services. B&K is a leading mid-cap brokerage,
servicing almost all leading Foreign and Domestic Financial Institutions. It is
a SEBI-registered Category I Merchant Banker, and it offers independent and
unbiased research with a coverage of over 450 companies, making it a leader in
the mid and small-cap space.
ET Money, now a 360 ONE company, is a pioneering
digital platform offering direct mutual funds, investment advisory, loan
against mutual funds and personal finance solutions. Its mission is to simplify
investing for Indians through intuitive technology and data-backed insights.
Headquartered in Mumbai, 360 ONE has 1,600+ employees,
a presence in major global financial hubs, and 28 locations in India.
Click here to know more: https://www.360.one/
