According to research released Wednesday, India’s private equity and venture capital (PE-VC) investments had a resurgence in 2024, expanding by around 9% to reach $43 billion over nearly 1,600 agreements. Traditional industries led the market’s expansion.

According to the Bain & Company research, the recovery solidified India’s standing as the second-largest PE-VC destination in Asia-Pacific, accounting for almost 20% of all investments and demonstrating rising investor confidence in the nation’s macroeconomic stability.

Although VC and growth investments were the key drivers of India’s total development, PE investments remained steady at $29 billion as funds managed high valuations in thriving public markets, which made deal completion more difficult.

As their percentage of total PE transaction prices increased from 37% in 2022 to 51% in 2024, we are clearly seeing a move towards buyout agreements. This indicates that buyouts may continue to be a key component of PE activity as funds look for scalable value creation possibilities and reflects a deliberate focus on gaining control positions in high-quality assets across industries, made possible in part by record dry powder. said Bain and Company Partner Prabhav Kashyap.

A quiet year for deal closures amid high valuations driven by public markets and increased competition was experienced by real estate and infrastructure, as well as a few traditional sectors like IT/ITeS, financial services, and healthcare-led funding. Other traditional sectors, like manufacturing and energy, eased after two years of growth.

Leading the group with 16% of all PE-VC investment, real estate and infrastructure saw a roughly 70% increase in transaction value over the prior year. With 14 agreements, including seven $100 million transactions in 2024, NBFCs led the financial services sector’s strong growth of almost 25%. This increase was particularly evident in the financing of affordable housing.