Private equity and venture capital (PE-VC) investments in Indian companies declined 3% year-on-year to $6.45 billion across 266 deals during the April-June quarter of 2026, reflecting continued caution among investors amid a challenging funding environment.
According to data from Venture Intelligence, PE-VC firms invested $6.6 billion across 309 deals during the corresponding quarter last year. The figures exclude private equity investments in the real estate sector.
Compared with the January-March quarter, investments fell 42%, from $11 billion across 376 deals. Deal volumes also declined 14% year-on-year and 29% sequentially.
The quarter saw 17 mega deals (transactions worth more than $100 million) aggregating $3.8 billion, compared with 15 such deals worth $3.6 billion in Q2 2025 and 21 deals worth $7.2 billion in the preceding quarter.
The largest investment during the quarter was the $732 million investment in data centre platform CtrlS Data Centers by Canada-based pension fund CPPIB. This was followed by Canada-based Fairfax Holdings' acquisition of a controlling stake in listed NBFC IIFL Capital Services for $384 million.
Other major transactions included the creation of North Star Energy, a $300 million renewable energy investment platform by British International Investment (BII) and Copenhagen Infrastructure Partners; Carlyle's $300 million acquisition of healthcare revenue cycle management provider EqualizeRCM; and digital lender KreditBee's $280 million Series E funding round led by Advent International, Dragon Capital, Motilal Oswal Alternates, Orchid Asia, PremjiInvest and White Oak Capital Management.
The IT and ITeS sector remained the largest recipient of PE-VC funding during the quarter, attracting $2.7 billion across 149 deals. The biggest transaction in the sector was Carlyle's $300 million investment in EqualizeRCM.
Driven by the $732 million investment in CtrlS Data Centers, the telecom sector emerged as the second-most attractive industry for PE-VC investors during the quarter. The BFSI sector attracted about $574 million across eight deals in Q2 2026.