India PE/VC Inflows Jump 46% to $17.1 Billion in Q3 2026 — Startup Funding India, October 2026

Startup funding in India sits inside a much bigger capital story. Private equity and venture capital investments in India reached $17.1 billion in the third quarter of 2026, up 46% from $11.7 billion in the same period last year, according to the EY-IVCA monthly PE/VC roundup reported by The Hindu BusinessLine on 30 October 2026. The quarterly total was also up 124% from $7.6 billion in the second quarter of 2026.

Bigger deals, fewer of them

Deal volumes actually contracted, falling 9% year on year to 348 transactions, down from 384 in Q3 2025. Large transactions drove the quarter: 36 large deals contributed $13 billion, or 76% of total value. The largest was KKR's acquisition of Medicover India for $1.4 billion. Pure-play PE and VC investments dipped 2% year on year to $8.5 billion, while real estate and infrastructure investments surged 182% to $8.6 billion.

Where the money went

By deal type, buyouts led with $5.1 billion, followed by startup funding at $4.8 billion. By sector, infrastructure led with $7.2 billion, followed by healthcare at $3.1 billion and real estate at $1.4 billion. Exits stood at $10.4 billion across 113 deals, down 24% year on year, with open-market sales accounting for $5.9 billion, or 57% of exit value. Fundraising closed at $6.4 billion across 32 funds, with the first close of NIIF Infrastructure Fund II at $2 billion the largest.

September was the strongest month this year

Vivek Soni, Partner and National Leader for Private Equity Services at EY India, said September 2026 emerged as the strongest month for PE/VC investments this year, driven by the highest number of large deals year to date. He added that investors are expected to remain cautious and selective, prioritising resilience of future profitability and return on capital.