Growth-PE Stage Companies Gain Momentum

Recent trends indicate a significant shift in the investment landscape, with private equity-venture capital (PE-VC) investors showing increased interest in 'Growth-PE' stage companies. This shift, aimed at mitigating risks amidst market uncertainties, is expected to continue throughout CY2025.

Investment Doubles in Early 2025

According to data from research firm Venture Intelligence, investments in Growth-PE stage companies have doubled, reaching nearly $1.1 billion in the first two months of CY2025, compared to $594 million during the same period in CY2024. This surge in investment excludes the real estate sector.

Notable Investments and Partnerships

Arun Natarajan, founder of Venture Intelligence, highlighted a notable uptick in PE-VC investments in mature startups and companies backed by larger groups seeking growth capital. Startups like Infra.Market, Leap Finance, Captain Fresh, and Rapido, along with larger entities such as Akasa Air and Neuberg Diagnostics, have successfully attracted growth capital through partnerships with PE investors.

The Growth-PE segment encompasses a wide range of investments, from Seed to Series D rounds exceeding $20 million in companies less than 10 years old, to Series E and Series F institutional investments in firms not more than a decade old.