India's Private Credit Market Reaches New Heights with $12.4 Billion Deployment in CY 2025
India's private credit market saw a record deployment of $12.4 billion in Calendar Year 2025, a substantial increase from the $9.63 billion recorded in CY 2024, according to a recent EY report. The year concluded with 166 transactions, marking a 35% jump in deal value, although activity slowed in the second half of the year after a strong first half.
The second half of 2025 saw a slight increase in deal value to $3.4 billion, up from $3.3 billion during the same period in the previous year. Despite this moderation, the market remained resilient, supported by easing financial conditions and strong domestic demand.
Dinkar Venkatasubramanian, Partner and Leader, Debt and Special Situations at EY India, noted, “India’s credit landscape remained robust through H2 2025, bolstered by favorable financial conditions and robust domestic demand. While bank and NBFC lending increased, private credit continued to play a crucial role in addressing refinancing needs, complex transactions, and selective capital expenditure funding.”
The report highlighted that sectors such as real estate, healthcare, and industrials were the primary contributors to the deal flow in the private credit space. More than 35% of the capital deployed in H2 2025 was allocated towards refinancing, acquisition financing, and capex funding. Notably, the deal value was concentrated in a limited number of large-sized transactions. Deals exceeding $100 million represented just 9% of the total deal count but accounted for nearly 36% of the aggregate deal value.
Several notable transactions occurred during this period. For instance, a PharmEasy group entity raised $193 million, while a Shapoorji Pallonji Group entity secured $183 million for refinancing purposes. Additionally, the GMR Group raised $182 million for refinancing and further investments across its group companies, as reported by EY.
The report also noted an increased participation of domestic private credit funds in the market. These funds accounted for a larger share of investments compared to global funds in H2CY25, reflecting the deepening of India’s domestic private credit ecosystem. The market's steady momentum was supported by stable interest rate expectations and structural funding gaps left by banks, particularly in the real estate and healthcare sectors.
“The market demonstrated steady momentum, supported by stable interest rate expectations and structural funding gaps left by banks, particularly in real estate and healthcare sectors. During the period, domestic private credit funds accounted for a larger share of investments compared to global funds, reflecting the deepening of India’s domestic private credit ecosystem,” the report stated.
