Executive summary

Between 2015 and 2022, investments in Indian startups rose a massive 15 times as private equity and venture capital stepped in to fill funding gaps and provide mentorship and strategic guidance.

The good part is funds continue to flow towards the startup ecosystem.

In fiscal 2024, early-stage transactions constituted 70% of the deal volume. The share of late-stage transactions rose to 6% from 1% in the decade ended fiscal 2024, and in terms of value, they are up to 39% from 18%.

This suggests private markets are maturing and that there is increased interest in startups that have established product and customer base and have predictable revenue streams.

Technology has garnered the most interest in private market investments in India. Artificial intelligence (AI) stands out as a key area of interest now. Segments such as fintech, foodtech, agritech and climatetech, among others, have come up and evolved over the past decade.

Alternative investment funds (AIFs) have become an integral part of the Indian private markets.