Mumbai: Venture capital and private equity investments fell sharply in April 2026 as rupee depreciation and geopolitical tensions hurt investor sentiment, according to a report by IVCA and EY released on Monday.
PE/VC funds invested $2.7 billion across 83 deals during the month, nearly 50 per cent lower than both April 2025 and March 2026.
The number of transactions also dropped to a 29-month low from 134 deals a year earlier and 131 deals in March.
EY Partner Vivek Soni said the rupee's depreciation to around Rs 96 against the US dollar, along with elevated crude oil and gas prices amid geopolitical tensions, has dampened foreign investor senti-ment.
The report said investors remain cautious due to a wide gap between seller expectations and investor valuations. PE and VC funds are also slowing deployment of available capital until there is greater clari-ty on economic momentum and valuation corrections.
Despite near-term caution, the medium- and long-term outlook for India remains positive because of strong macroeconomic fundamentals and long-term growth prospects, Soni said.
The largest transaction in April was ICICI Prudential Alternatives' $283 million investment in two RMZ office assets in Bengaluru
and Pune.
The month saw nine large deals worth a combined $1.7 billion.
Real estate attracted the highest investments at $699 million, followed by financial services at $440 mil-lion and technology at $361 million.
Fundraising during the month stood at $646 million across six deals, the lowest since December 2024.