Venture investments halve in April to $2.7B as rupee depreciation weighs on sentiment

Venture capital and private equity funds invested $2.7 billion across 83 deals in April, as rupee depreciation amid geopolitical tensions weighed on investor sentiment, a report said on Monday.

The bets were around 50% lower than in the year-ago period and in the preceding month of March 2026, according to the report by the lobby group IVCA and the consultancy firm EY.

From a number-of-deals perspective, April 2026 saw 83 transactions, a 29-month low and much lower than 134 in the year-ago period and 131 in March this year, the report said.

"The depreciation of the rupee to around Rs 96/USD, coupled with persistently high crude oil and gas prices amid geopolitical tensions, is weighing on foreign investor sentiments," EY's partner Vivek Soni said.

The report said the bid-ask spread between investor valuations and seller expectations remains wide, and investors are going slow on dry powder available with PE/VC funds, pending clearer signs of sustained economic momentum and a correction in valuations.

"With these headwinds, in our view, the near-term outlook for PE/VC investments remains cautious. However, the medium- to long-term outlook for India continues to be positive, supported by strong macroeconomic fundamentals and its secular long-term growth story," Soni said.

The largest deal in April was ICICI Prudential Alternatives investing $283 million in two RMZ office assets in Bengaluru and Pune, the report said, adding that there were nine large deals totalling $1.7 billion in the month.

More than half of the bets went into the top three sectors: real estate at $699 million, financial services at $440 million, and technology at $361 million.

The month recorded total fundraising of $646 million across six deals, the lowest monthly figure since December 2024, the report added.