Private equity activity in May in India reported the weakest performance this year so far with deal volumes dropping by nearly a fourth and 39 per cent fall in volumes from April, while the average deal size fell by a fifth, according to Grant Thornton Bharat.

A total of 107 PE deals were transacted in May with a value of $1.8 billion and the average was at $17.2 million, down from $21.5 million in April.

Subdued PE activity dragged down overall deal activity in India, including mergers and acquisitions and fund raising, as markets remained volatile in the background of  dynamic, evolving geo-political developments and uncertainty over global trade tariffs.

According to GT, the month under review saw 179 deals with a total value of $4.5 billion, “the lowest monthly tally in volume and value terms so far this year.” Overall deal volumes fell 17 per cent and volumes declined 4 per cent month-on-month.

Mergers and acquisitions saw a 75 per cent rise in deal value from April, due to one single deal of over $1 billion, though volumes saw a 1 per cent dip.

Fund raising via initial public offers and qualified institutional placement was also muted with only two IPOs raising $300 million.

Deal momentum is expected to pick up in the second half of the current fiscal year, as market valuations stabilise and exit opportunities improve, said Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.

PE activity

The subdued PE deals notwithstanding, two new unicorns made their appearance — Drools Pet Foods and JSW One Platforms.

The top PE deal during the month was that of General Catalyst investing $218 million in PB Healthcare. The other notable deals included a $200 million infusion into logistics player Porter by Kedaara Capital, Wellington Management, and Vitruvian Partners, and $170 million invested in IKF Finance by Norwest and Motilal Oswal Alternates.

 Venture capital dominated deal volumes, particularly in retail and consumer, technology, banking and financial services, with strong early-stage activity across 24 seed and 10 pre-Series A rounds, the report said.

The market continues to reflect consistent activity levels, albeit with a tilt toward smaller deal sizes, a trend that has defined investor behaviour so far this year, GT said.

M&As

One of the biggest deals during the month was that of Sumitomo Mitsui Banking Corporation buying a 20 per cent stake in YES Bank for $1.6 billion, and it accounted for 66 per cent of total deal value.

 Outbound M&A activity saw a sharp rise, with 15 deals closed versus just two in April, “signalling renewed confidence among Indian corporates to pursue cross-border growth and integration after nearly a decade,” said the report.

Some of the other deals were that of KPIT Technologies buying Caresoft Group for $191 million, inFinx Services’ 100 per cent stake in i3 Verticals Inc- Healthcare Revenue Cycle Management business for $96 million, Waaree Energies’ buying Kamath Transformers for $34 million.

Fund raising

There were just two QIP issuances during May raising $2.9 million, a 60 per cent decline from April.

“The overall softness reflects cautious investor sentiment amid ongoing market uncertainties,” GT said.

Published on June 11, 2025