India's PE and VC fundraises more than double to $21.2 billion in Jan-June: Report

New Delhi: India's private equity (PE) and venture capital (VC) fundraises more than doubled to $21.2 billion across 48 funds in the first half (H1) of 2026, reflecting strong investor confidence despite a slowdown in deal activity, according to a report released on Friday.

A report by EY-IVCA highlighted that total fundraises surged from $10.1 billion in the corresponding period last year and $13 billion in the second half of 2025.

The biggest fundraise during the six-month period was Bain Capital's Asia Fund VI, which raised $10.5 billion, significantly exceeding its original target of $7 billion.

However, PE/VC investment activity remained subdued during H1 2026.

Total investments stood at $20.5 billion, down 36 per cent from $31.8 billion in the year-ago period and 29 per cent lower than $29 billion recorded in the second half of 2025.

The number of deals also declined 18 per cent year-on-year to 604, compared with 734 in H1 2025.

According to Vivek Soni, Partner and National Leader, Private Equity Services at EY, investor sentiment remained cautious amid geopolitical tensions, elevated crude oil prices, depreciation of the Indian rupee against the US dollar and valuation gaps between buyers and sellers, making the second quarter of 2026 the slowest for PE/VC investments in the past six years.

Among sectors, real estate attracted the highest investments at $4.1 billion, followed by technology at $3.1 billion and financial services at $3 billion.

In addition, the report also highlighted strong momentum in India's data centre ecosystem, with investments and commitments in data centres and allied sectors reaching $33.3 billion in H1 2026, driven by growing demand for cloud infrastructure, artificial intelligence and digital services.

The report said improving valuations, supportive government policies and India's long-term growth prospects are expected to create fresh investment opportunities, supporting a recovery in PE/VC activity over the medium to long term despite near-term global uncertainties.

ABOUT THE AUTHOR

The Hans India