The Indian Private Equity (PE) landscape in 2025 is undergoing a fundamental structural reset. According to the KPMG Pulse of Private Equity Q3’25 report, total investment value has plummeted by 43%, falling from $26.3 billion (289 deals) in 2024 to $14.9 billion (217 deals) as of September 2025.
While the headline figure suggests a retreat, the internal mechanics of the market reveal a shift toward high-conviction, operationally intensive strategies. The era of “passive checks” is being replaced by three specific investment archetypes that prioritize control, liquidity, and global ecosystem value.
1. The Secondary Surge: Liquidity Without Control
For India’s established tech giants and unicorns, the 2025 story is one of Secondary Transactions. PE firms have reduced injecting primary capital (new money into the company) at inflated valuations. Instead, they are buying existing shares from early venture capitalists and employees.
- The Logic: In this model, PE firms accept a minority stake and no operational control. They are betting on the “proven winners” and providing an exit for early backers before an eventual IPO.
- The Benchmark Deals:
- Lenskart: In June 2024, Temasek and Fidelity invested $200 million in a purely secondary deal (no new money to the company), valuing the retailer at $5 billion. This followed a massive $500 million secondary infusion from ADIA where SoftBank partially exited.
- Meesho: Before listing, Meesho saw significant secondary movement. While Prosus maintained its ~11% stake, other early backers used the secondary window to offload shares to late-stage PE funds looking for “pre-IPO” entry points.
2. The “Business Builder” Buyout: Taking the Steering Wheel
In the mid-market, particularly in fragmented sectors like healthcare and specialized manufacturing, PE firms have pivoted to Control Deals. They are eschewing minority stakes in favor of acquiring controlling stakes.
- The Logic: By taking majority control, PE firms can execute a “Roll-up Strategy.” They buy one “platform” company and merge smaller, similar businesses into it to create a massive, efficient industry leader.
- The Benchmark Deals:
- Healthcare (KKR & HCG): In February 2025, KKR moved to acquire a controlling 51% stake in Healthcare Global Enterprises (HCG) from CVC Capital, with a follow-on open offer to potentially reach 77%. KKR is actively using this as a platform to consolidate the fragmented cancer-care market.
- Pharma (Advent & Suven): Advent International completed its 50.1% acquisition of Suven Pharma and is now merging it with Cohance Lifesciences (which it already owned 100%). This creates a controlling 66.7% stake in a new CDMO powerhouse, proving that “Control” is the primary way they unlock value today.
3. The Global Ecosystem Play: India as a Value Engine
The most sophisticated trend of 2025 is the use of Indian companies to drive value across a PE firm’s global portfolio. The Logic: A global PE firm acquires an Indian company specializing in AI, SaaS, or Business Process Management (BPM). They then mandate that their other portfolio companies worldwide (e.g., a German manufacturer or a US retailer) use this Indian firm for their tech and operational needs.
- The Benchmark Deals:
- Healthcare Services (EQT & GeBBS): EQT’s $860 million buyout of GeBBS Healthcare is a primary example. EQT can now deploy GeBBS’s revenue management services across its entire global healthcare portfolio, creating a “captive” revenue stream for the Indian firm while lowering costs for its global assets.
- Technology (Blackstone & Mphasis): Blackstone continues to use its controlling stake in Mphasis as the dedicated tech backbone for its vast global network of real estate and infrastructure companies.
Beyond the Numbers
The 43% drop in deal value is a direct result of investors refusing to overpay in a volatile global trade environment. However, the market has matured significantly:
Private Equity in India has graduated from “funding ideas” to “building infrastructure.” Investors are now treating Indian enterprises as the operational engine for their global portfolios—a shift that makes the current slowdown look more like a healthy, strategic consolidation than a decline.
