PE investments in India’s consumer sector at 4

Private Equity Investments in India's Consumer Sector Reach 4-Year High

In a significant milestone for India's economy, private equity investments in the overall consumer sector have hit a 4-year high in terms of both deal value as well as number of deals, as per an analysis by Equirus Capital.

Cumulative Deal Value and Number of Deals:

• CY2025: ₹35,800 crore, 309 deals
• CY2024: ₹23,000 crore, 232 deals
• CY2022: ₹32,200 crore, 251 deals

Bhavesh Shah, Managing Director, Head - Investment Banking, Equirus Capital, said: "We have seen the highest activity in terms of PE and VC investments in the consumer sector in CY2025, compared to the last four years, both in terms of deal value and the number of deals."

Key Highlights:

• Highest activity in terms of PE and VC investments in the consumer sector in CY2025
• Interest among PE investors for the consumer sector, which are generally capital efficient businesses
• Good growth over the years and maturity of brands

"This indicates there is a good amount of interest among PE investors for the consumer sector, which are generally capital efficient businesses. A lot of brands have seen good growth over the years and have matured," Shah added.

Investor Interest in Key Segments:

• Food sector, including health food segment
• Home and personal care segment
• Beauty and personal care, especially D2C brands

With growing private equity interest, the focus on data-driven strategy, unit economics, supply chain resilience and scalability has sharpened in the sector.

Future Outlook:

Shah pointed out that there is high interest among PE investors for the consumer sector. "This is also because many have seen lucrative exits due to companies going for an IPO. Also, they are flush with capital raised for themselves in recent times," he added.