Chennai: Delays in initial public offerings (IPOs), particularly for large technology listings amid market volatility, have significantly dragged down private equity and venture capital (PE-VC) deals in April. According to data from Venture Intelligence, PE-VC investments fell over 32% year-on-year from $2.8 billion to $1.9 billion, while the number of deals declined from 124 to 87.
Pre-IPO Funding Slowdown
Arun Natarajan, founder of Venture Intelligence, attributed the decline largely to a slowdown in pre-IPO funding for tech startups. "Companies are delaying IPOs and, in some cases, taking on debt. While they may still attract pre-IPO funding, it will not be of the size and order seen last year with Urban Company and Groww. This is largely due to challenges in the market driven by global uncertainty, while concerns over post-IPO valuations have weighed on investor sentiment," he said.
Month-on-Month Decline
Investments fell nearly 60% compared to March 2026, which saw 120 deals and was boosted by large mega-deal activity. The average deal size declined in April, though despite West Asia concerns, funds continue to deploy capital actively, Natarajan added.
Stage-Wise Trends
Average cheque sizes increased in early-stage deals compared to last year. Early-stage PE-VC investments rose from $166 million to $253 million, even as deal count fell from 53 to 40. Growth-stage deals declined from 44 to 26, while investment moderated to $520 million from $524 million. Late-stage investments fell significantly from $653 million to $376 million.
Top Deals in April
The largest deal for the month was KreditBee's $280 million funding, followed by a $270 million investment by Singapore-based Everstone in Apothecon Pharmaceuticals, KKR's $186 million investment in Baby Memorial Hospital, and Everstone and others' $150 million investment in business software firm Wingify Software.
