India’s business investment scene took a dip between April and June 2025, says a new report from PwC India. The total number of investment deals dropped by 20% compared to the previous quarter, and the total money involved also fell by 22%.
There were 697 deals in Q2, compared to 867 in Q1. The value of these deals dropped from USD 33.5 billion to USD 26.2 billion.
Mergers & Acquisitions (M&A) were hit the hardest — the number of deals fell by 27%, from 413 to 300, which is the biggest drop seen in the last six quarters. This ends a growth trend that started in early 2024.
Private Equity (PE) deals also fell. There were 397 PE deals in Q2, down 13% from Q1. The total value of these investments dropped by 26%, from USD 14.8 billion to USD 10.9 billion.
Even compared to the same time last year, PE deal value is down by 6%, showing that investors are more cautious right now.
When it comes to sectors:
- Retail & Consumer led in deal count with 116 deals, but the deal sizes were smaller (USD 1.4 billion total).
- Financial Services saw fewer deals (47), but the biggest money (USD 4.1 billion).
- Technology had 99 deals worth USD 1.5 billion.
- Pharmaceuticals had only 30 deals but nearly USD 4 billion in value — showing some high-value transactions.
In short, while some areas like M&A still show year-over-year strength, the private equity space is clearly in a more cautious phase, with tighter checks and risk assessments.
Source: Mint
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