The landscape of private equity (PE) investment in India is undergoing a significant transformation as 2026 approaches. While the total value of private deals saw a modest increase, reaching $6.6 billion in 2024 compared to $6.3 billion as of early December, a more profound shift is underway in deal size and investor focus. The market is now being led by enterprise technology and deeptech sectors, with investors displaying a more disciplined and selective approach.
The New Deal Dynamics: Volume Up, Mega-Deals Down
A clear trend has emerged in the Indian PE and growth-stage funding arena. Data reveals a strong increase in the volume of deals within the $30-100 million range. Specifically, deals sized between $30 million and $50 million rose to 39 this year from 27 in the previous year. Similarly, transactions between $50 million and $100 million increased to 21 from 14.
Conversely, the number of mega-deals exceeding $100 million has decreased, falling to 17 this year from 22 last year. This shift indicates a market that is active but increasingly cautious about writing oversized checks. "Despite strong deal volumes, the slight dip in aggregate value signals a more selective and disciplined market," explained Nishesh Dalal, Partner and Private Equity Leader at Deloitte South Asia.
Investor Strategy: The Rise of Control Deals and the IPO Exodus
The changing deal structure is closely linked to two major factors: investor strategy and a wave of public market listings. Investors are now gravitating towards control deals, which allow for deeper operational involvement, tighter governance, and clearer exit pathways. This move away from minority stakes underscores a desire for more hands-on value creation.
Simultaneously, the private funding landscape is being reshaped by a notable surge in tech Initial Public Offerings (IPOs). Several prominent late-stage startups have chosen to go public or are in advanced preparation, effectively graduating from the private market. This list includes e-commerce player Meesho, eyewear retailer Lenskart, stockbroker Groww, home services provider Urban Company, edtech firm PhysicsWallah, and EV maker Ather Energy.
"One simple correlation is the number of late-stage companies that have decided to go public or are gearing up to go public," stated Gopal Jain, Managing Director and CEO of Gaja Capital. This pipeline remains robust for 2026, with expectations for listings from fintech giant PhonePe, e-commerce major Flipkart, and hospitality chain OYO, among others.
Future Hotspots: Where is PE Money Flowing Next?
Looking ahead, experts pinpoint specific sectors that will attract the lion's share of private equity investment. Differentiation and a credible path to profitability are becoming non-negotiable for companies seeking capital.
Enterprise technology companies, particularly in data analytics and services, are poised for attention. Deeptech is also anticipated to see heightened interest across all investment stages, especially as companies like SEDEMAC Mechatronics and Aequs test public market appetite with their own IPOs.
Neeraj Shrimali of Avendus Capital highlighted four key expenditure areas for PE: "E-commerce, including new-age brands, fintech, online services, and SaaS (software-as-a-service), will be where investors will put a lot of their money in the coming year." This sectoral focus aligns with India's structural strengths—its sizable population, attractive demographics, and growing domestic consumption—which continue to underpin long-term investor confidence despite short-term geopolitical uncertainties.
Industry leaders urge perspective on annual fluctuations. "While there may have been a modest softening in growth-stage private transactions, we should be careful not to over-interpret any single year’s data," advised Sudhir Variyar of Multiples Alternate Asset Management. The firm itself plans to deploy $500 million to $750 million over the next 18 months, reflecting enduring faith in the Indian market. The consensus is clear: the Indian private equity story is evolving, not retreating, with 2026 set to be defined by smarter capital chasing sustainable business models in technology and beyond.
