PE investments in India’s consumer sector at 4-year high in 2025: Equirus Capital

India's Consumer Sector Sees Record-Breaking Private Equity Investments

India's robust consumption growth story has led to a surge in private equity investments in the consumer sector, reaching a new 4-year high in both deal value and number of deals, according to an analysis by Equirus Capital.

Cumulative Investments Reach ₹35,800 Crore

• Cumulative private equity and venture capital investments in the consumer sector rose to ₹35,800 crore in CY2025
• Up from ₹23,000 crore in CY2024 and ₹32,200 crore in CY2022

Record-Breaking Deal Activity

• Total number of investment deals stood at 309 in CY2025
• Up from 232 in CY2024 and 251 in CY2022

Bhavesh Shah's Insights

Bhavesh Shah, Managing Director, Head - Investment Banking, Equirus Capital, shares his insights on the current market trends:

• “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."
• 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. It reflects the potential of the consumption story that India offers."
• We expect this level of investment activity to continue going forward."

Key Trends and Drivers

The consumer sector has seen significant interest from investors, particularly in the following areas:

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

Future Outlook

Shah points out that the high interest among PE investors for the consumer sector is driven by the following factors:

• Lucrative exits due to companies going for an IPO
• Flush capital raised for themselves in recent times