Healthcare ranks second in India’s PE/VC investments in Q3 2026 at $3.1 billion

Healthcare ranked second in terms of investment value in 3Q2026, recording US$3.1 billion in private equity and venture capital (PE/VC) investments, an increase of 621 per cent year-on-year and 878 per cent quarter-on-quarter, according to the EY-IVCA monthly PE/VC roundup.

The sector recorded 11 deals in September 2026, compared with eight in August and six in July. Healthcare deal volume stood at 28 in 3Q2026, compared with 19 in 2Q2026. PE/VC investments in the healthcare sector reached US$1.1 billion in September 2026, marking a 465 per cent year-on-year increase.

Commenting on the industry-wide deal landscape, Vivek Soni, Partner and National Leader, Private Equity Services, EY India, said, “3Q2026 recorded US17.1billioninPE/VCinvestments,a 46 per cent year-on-year increase (US11.7 billion in 3Q2025) and a 124 per cent quarter-on-quarter increase (US$7.6 billion in 2Q2026). The number of deals decreased to 348 in 3Q 2026, a 9 per cent year-on-year decrease (384 deals in 3Q2025), but saw a 44 per cent quarter-on-quarter increase (241 deals in 2Q2026).

“Pure-play PE/VC investments in 3Q2026 (US8.5billion) declined by 2 per cent compared to 3Q 2025 (US8.6 billion). Investments in the real estate and infrastructure asset class increased by 182 per cent to US8.6 billion in 3Q 2026 from US 3.2 billion in 3Q 2025. Compared to 2Q 2026, pure-play PE/VC investments were up by 92 per cent from US4.4 billion,and real estate and infrastructure investments increased by 168 per cent from US 3.2 billion. In terms of the number of deals, pure-play investments decreased by 10 per cent year-on-year, whereas real estate and infrastructure deal volume was down by 3 per cent year-on-year.

“In 3Q2026, buyout deals were the highest at US5.1billion,followed bystart-up investments at US4.8 billion. From a sector point of view, infrastructure was the top sector in 3Q2026, recording US7.2billionininvestments,followedbyhealthcare(US3.1 billion).

“PE/VC exits stood at US10.4 billion across 113 deal sin 3Q 2026, 24 per cent lower than in 3Q 2025 (US13.7 billion). Open market exits accounted for 57 per cent of the total exit value (US$5.9 billion).

“In the recent past, PE/VC-backed IPOs had emerged as a key exit route for investors, supported by strong capital markets and a healthy valuation environment. Going forward, IPO success is expected to be driven increasingly by profitability and earnings visibility rather than market sentiment and momentum. Because of prevailing volatility and mid-cap / small-cap trading multiple compression, near-term IPO activity may be moderate, but the long-term outlook remains positive. Please see our spotlight section on PE backed IPO’s for more details.

“September 2026 emerged as the strongest month for PE/VC investments this year, driven by the highest number of large deals YTD. It also recorded the highest monthly investment value since May 2024 (US$7.3 billion in May 2024).

“While the Indian capital markets have largely consolidated over the past few weeks, the upcoming quarterly earnings season is being closely watched given prevailing inflationary pressures. The recent repo rate hike by the Reserve Bank of India reflects a proactive approach as high crude oil prices persist. Going forward, we expect PE /VC investors to remain cautious and selective and prioritize resilience of future profitability and return on capital.”

PE/VC investments

PE/VC investments in 3Q 2026 reached US 17.1 billion, marking a 46 per cent year-on-year increase from 3Q 2025 (US11.7 billion) and a 124 per cent quarter-on-quarter increase from 2Q2026 (US$7.6 billion). The number of deals decreased to 348 in 3Q2026, representing a 9 per cent year-on-year decline from 3Q2025 (384 deals), but a 44 per cent quarter-on-quarter increase compared with 2Q2026 (241 deals).

The quarter recorded 36 large deals totalling US 13 billion, reflecting a 97 per cent increase in value compared with 3Q 2025 (US6.6 billion across 26 large deals) and a 178 per cent increase compared with 2Q2026 (US 4.7 billion across21largedeals).Large deals accounted for 76 per cent of overall PE/VC investments in 3Q 2026. The largest deal of the quarter was KKR’s acquisition of Medicover India for US 1.4 billion.

By deal type, buyout investments accounted for the largest share of PE/VC activity in 3Q2026, with US5.1billiondeployed,a419percentincreaseinvaluecomparedwith3Q2025(US1 billion). Start-up investments ranked second, with US4.8billioninvested,anincreaseof55percentfromUS3.1 billion in 3Q2025.

Growth investments recorded US3.5billion,2percentlowerthantheamountrecordedin3Q2025(US3.6 billion). PIPE investments reached US2.6billionin3Q2026,comparedwithUS1.5 billion in 3Q2025. Credit deals were the smallest segment at US1.2billion,54percentlowerthanthevaluerecordedin3Q2025(US2.6 billion).

From a sector perspective, infrastructure led in 3Q2026 with US7.2billion,followedbyhealthcarewithUS3.1 billion and real estate with US$1.4 billion. Together, these sectors accounted for 69 per cent of overall PE/VC investments in 3Q2026.

PE/VC-backed IPOs

The Indian PE/VC-backed IPO market has undergone a change over the past decade. Since 2016, a total of 290 PE/VC-backed IPOs have been recorded, with nearly 75 per cent of these listings (217 IPOs) occurring in the last five years alone, since 2021.

The year 2021 marked a peak for India’s PE/VC-backed IPO market, with 44 listings generating approximately US$5.2 billion in exit proceeds for investors, supported by market conditions, liquidity and investor demand. Activity moderated in 2022 amid global market volatility driven by inflation, rising interest rates and geopolitical uncertainties, before rebounding in 2023.

Momentum strengthened in 2024 and 2025, with 42 PE/VC-backed IPOs in each year, driven by India’s economic growth. Despite global uncertainties, the trend has continued in 2026, with 39 PE/VC-backed IPOs recorded so far, highlighting the depth of the IPO pipeline and investor confidence in PE/VC-backed businesses.

Over the last five years, since 2021, PE/VC-backed IPO exits have realised US17.1billionforPE/VCinvestorsacross217IPOs.Intermsofsectors,financialservicesledPE/VC-backedIPOexitsinbothvalueandvolume,recordingUS4.2 billion across 36 IPOs, followed by e-commerce with US$2.6 billion across 14 IPOs.

Automotive ranked third, while technology and healthcare ranked fourth and fifth, respectively. These sectors recorded exits worth more than US$1 billion each and collectively accounted for 69 per cent of total PE/VC-backed IPOs by value since 2021.

The increase in PE/VC-backed IPOs in recent years reflects the growth, depth and resilience of India’s capital markets. Public listings have emerged as an increasingly preferred exit route for investors, offering liquidity and the potential for value realisation compared with private transactions.

The trend indicates investor confidence in the Indian market and the role of IPOs in enabling PE/VC investors, particularly early-stage backers, to monetise investments while increasing market visibility. PE/VC-backed companies now account for a share of India’s overall IPO activity, demonstrating the integration of private capital with the public markets ecosystem.

Supported by India’s economic fundamentals and investor interest, the country continues to attract private equity and venture capital investment. As the capital markets develop, PE/VC-backed IPOs are expected to remain a part of the fundraising and exit landscape, providing companies with an avenue to access public capital and fund their next phase of growth. While IPO activity may witness moderation in the near term amid market uncertainties, the long-term outlook for PE/VC-backed IPOs remains positive.

PE/VC exits

3Q2026 recorded 113 exits worth US10.4billion,thehighestquarterlyexitvalueinthetrailingtwelvemonths(TTM).Exitvaluewas24percentlowerthan3Q2025(US13.7 billion) but 107 per cent higher than 2Q2026 (US$5 billion). Exit volume was 35 per cent higher than 3Q2025 (84 exits) and 105 per cent higher than 2Q2026 (55 exits). Deal values were unavailable for 11 exits in 2Q2026.

Open market exits led with US5.9billionacross54exits,accountingfor57percentoftotalexitvaluein3Q2026.Thisrepresenteda93percentyear-on-yearincreasefromUS3.1 billion across 26 exits in 3Q2025 and was 113 per cent higher than 2Q2026 (US$2.8 billion across 24 exits).

Secondary exits followed with US2billionacross15exits,an 18 per cent year-on-year in crease fromUS1.7 billion across 16 deals in 3Q2025.

With 27 PE-backed IPOs, 3Q2026 recorded the highest number in a quarter. However, the value declined from US8.6billionin3Q2025(17IPOs)toUS1.2 billion in 3Q2026.

Strategic exits totalled US1.3billionacross15exits,a257percentyear-on-yearincreasefromUS369 million across 24 deals in 3Q2025. 3Q2026 also recorded two buyback deals worth a total of US$13 million.

The largest exit in 3Q2026 was Avaada Ventures’ repayment of US$701 million in debt to Brookfield Renewable.

By sector, financial services recorded the highest exit value at US2.8billionacross21exits,followedbye-commerceatUS2 billion and healthcare at US$1.4 billion.

PE/VC fundraise

3Q2026 recorded total fundraises of US6.4billionacross32fundraises,comparedwithUS16.2 billion in 3Q2025 and US$4.7 billion in 2Q2026.

The largest fundraise of the quarter saw NIIF Infrastructure Fund II achieve a US$2 billion first close, backed by the Government of India and institutional investors from India and overseas.