PE

Private equity investments in India’s real estate sector have registered a sharp contraction, reflecting growing caution among global and domestic investors. According to recent industry estimates, capital inflows declined 29 percent year-on-year to $3.46 billion, underscoring the impact of higher interest rates, geopolitical uncertainty and selective risk appetite. While residential and warehousing assets continued to attract interest, commercial real estate faced funding headwinds.

Private equity and venture capital activity recorded a sharp rebound in November, with investments rising 31% compared with the previous month, according to a recent industry report. The increase signals renewed investor confidence after a period of cautious deal-making, driven by improved valuations and selective opportunities across sectors. Technology, financial services, and consumer-focused businesses attracted the bulk of capital, reflecting long-term growth themes.

Global private equity firm L Catterton has made a significant investment in Indian food major Haldiram’s, underscoring rising investor confidence in the country’s fast-growing packaged food and snacks market. The deal reflects the growing appeal of heritage Indian brands that combine scale, brand loyalty, and strong cash flows. For Haldiram’s, the partnership offers access to global expertise, capital, and growth frameworks as it looks beyond traditional markets.

Global private equity major TPG has finalized its exit from Sai Life Sciences, divesting its stake in the Hyderabad-based contract research and manufacturing services (CRAMS) firm for Rs. 2,675 crore. The deal marks a significant monetization for TPG, which had invested in Sai Life Sciences nearly a decade ago, and underscores the growing investor appetite for India’s pharmaceutical and life sciences sector.

Private equity firm WestBridge Capital has announced a strategic investment in Edelweiss Asset Management, underscoring growing investor confidence in India’s wealth and asset management industry. The partnership is expected to provide Edelweiss with additional capital to expand its product offerings, enhance digital capabilities, and strengthen its distribution network.

India witnessed a notable contraction in private equity and venture capital (PE/VC) investments during the first half of 2025, with total deal value slipping by 19% year-on-year. This moderation, marked by cautious investor sentiment and global economic headwinds, underscores a shift in capital allocation strategy among institutional investors. While the technology and financial services sectors continued to attract significant funding, the overall decline reflects macroeconomic tightening, higher interest rates, and increased scrutiny of startup valuations.

In a development underscoring the growing allure of India’s premium food and beverage segment, multiple private equity players are in advanced discussions to acquire a substantial stake in Theobroma, the popular bakery and patisserie chain. Known for its artisanal cakes, brownies, and gourmet offerings, Theobroma has evolved into a household name, reflecting shifting consumer preferences toward high-quality indulgence. This prospective transaction highlights the robust investor appetite for scalable consumer brands in India’s rapidly formalizing food service industry.