India PE/VC investment falls to USD 2.7 billion in April 2026 as rupee weakens

Private equity and venture capital activity in India slowed in April 2026, with investors putting in USD 2.7 billion across 83 deals. A report by IVCA and EY linked the dip to weaker sentiment amid geopolitical tensions and a softer rupee. The total value was about 50 per cent lower than both April last year and March 2026.

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Deal volumes also fell sharply. April 2026 logged 83 transactions, which the report called a 29-month low. That was well below 134 deals in the same month last year. It also dropped from 131 deals recorded in March 2026, showing a clear month-on-month decline.

PE/VC investments and rupee depreciation impact

EY partner Vivek Soni said currency and energy costs added pressure on foreign investors. The rupee weakened to around INR 96/USD during the period. At the same time, crude oil and gas prices stayed high due to geopolitical tensions. Together, these factors weighed on investor sentiment, according to the report.

The report also noted a continued gap between what buyers wanted to pay and what sellers expected. It said the bid-ask spread stayed wide across deals. Investors also slowed the use of available dry powder. The report added that many funds waited for steadier economic momentum and some valuation correction.

"With these headwinds, in our view, the near-term outlook for PE/VC investments remains cautious. However, the medium- to long-term outlook for India continues to be positive, supported by strong macroeconomic fundamentals and its secular long-term growth story,\" Soni said.

PE/VC investments: largest deal and big-ticket transactions

The biggest transaction in April involved ICICI Prudential Alternatives. The firm invested USD 283 million into two RMZ office assets. These assets were located in Bengaluru and Pune. The report also said April had nine large deals in total, together valued at USD 1.7 billion.

PE/VC investments by sector and fundraising levels

Capital inflows were concentrated in a few sectors. More than half of total investment went to the top three segments. Real estate drew USD 699 million, while financial services received USD 440 million. Technology attracted USD 361 million, as per the IVCA and EY report.

Fundraising also remained weak during the month. The report recorded USD 646 million raised across six deals in April 2026. It said this was the lowest monthly fundraising level since December 2024. The figures added to broader signs of caution across private market activity.

With inputs from PTI