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There are some indications that protracted conflict and uncertainty is beginning to weigh on private market fundraising in what has so far been one of the most active markets in Asia.
This report looks at how India-focused private equity (PE) and venture capital (VC) firms raised about $2.45 billion as of April 7 this year, a decline from before, as some limited partners prioritise larger fund managers while others remain on the sidelines.
Similarly in Southeast Asia, capital has been concentrated in a smaller number of large deals as investors became more selective, as research from Bain & Company showed.
Its report on 2025 showed the PE market remained subdued amid persistent exit pressures. Deal value fell about 10% year-on-year to $14 billion across 84 transactions, while exit value dropped more sharply, declining 32% during the year.
There were some bright spots, as data from DealStreetAsia DATA VANTAGE showed a three-year high in startup deal activity in India in the first quarter of the year.
At the same time, there is keen interest among PE managers – both domestic and global – in India’s healthcare industry, particularly in the diagnostics segment. Among those scouting deals are ICICI Venture, Tata Capital Healthcare Fund, and 360 ONE Asset.
Separately, a consortium comprising TPG, GIC, and ICICI Bank is reportedly acquiring Indian non-banking financial company Aseem Infrastructure Finance, a subsidiary of India’s National Investment & Infrastructure Fund, which focuses on green financing. The deal will see the investors collectively commit about 60 billion rupees.
DSA exclusives
DealStreetAsia has learnt that Golden Gate Ventures is seeking about $150 million from a secondary sale process. It is understood to comprise stakes in Southeast Asian startups from its second fund, which is in turn backed by Temasek and Eduardo Saverin.
Indonesia-based venture capital firm Alpha JWC Ventures is understood to be raising its fifth fund, with a target of between $200 million – $300 million. The firm is said to be looking at late-stage deals and making more global investments.
Shareholders of Philippine-based pharmaceutical trader Ambica International Corporation are believed to have been in talks with investors, including PE firms, around a potential stake sale. Ambica is a majority-owned subsidiary of Bridgeway Pharma Corporation, ultimately controlled by United Laboratories, Inc, and is tightly controlled with just seven stockholders in a recent filing.
Elsewhere in Asia
Vietnam’s Masan Group is exploring an initial public offering for its retail arm, WinCommerce, at a valuation of at least $10 billion. The listing, following years of restructuring, is tentatively planned for 2028-29 in Vietnam.
Singapore’s Keppel sees strong LP interest in its private credit and infrastructure strategies. The company’s executives expect to raise some S$2 billion in LP commitments in the coming months for its funds; some S$400 million has already been raised in the first quarter for its private credit and real estate funds.
Indonesian stockbroking platforms Stockbit and Ajaib reported strong top- and bottom-line growth in 2025, driven by a surge in retail investor participation and trading activity. However, there are questions about the sustainability of retail investor activity amid market volatility, and in the wake of MSCI’s January caution, which has clouded the outlook for the entire sector.
Philippine fintech lender Salmon Group is raising $100 million in fresh capital through a mix of equity and public bonds. The financing round includes $60 million in equity, anchored by US-based venture firm Spice Expeditions. Washington University Investment Management Company, Moore Strategic Ventures, and FJ Labs, alongside existing backers, also participated in the equity round.
Chinese commercial service robot maker Pudu Robotics has raised nearly $150 million in a fresh funding round, lifting its valuation to over $1.5 billion. Founded in 2016, Pudu Robotics develops and manufactures commercial service robots used for indoor delivery, cleaning, disinfection, and industrial logistics. Its backers have included Sequoia Capital China, Meituan, and Shenzhen Investment Holdings.
DFI deployments
Some development finance institutions (DFIs) and multilateral development banks have made significant allocations in South and Southeast Asia, and are continuing with strong commitments amid tighter national budgets, and increasing needs for defence and national security.
The UK government is driving private capital investments into energy transition and development in South and Southeast Asia. Through its development finance arm British International Investments, it has launched a dedicated vehicle – the British Climate Partners – that aims to attract three times’ more commercial capital to climate finance in the region.
BII is expecting that 40% of its new investments overall will qualify as climate finance. Last year it reported committing more than $400 million to green finance in Southeast Asia.
Meanwhile, the Asian Development Bank this week reported a higher rate of equity allocations in Asia, with a multi-year high of $417 million across funds and direct investments.
That was up from $407 million allocated in 2024, and a sharp jump from just $105 million in 2023. The capital was deployed across seven transactions spanning China, India, the Philippines, and three regionally focused fund vehicles. By year-end, ADB’s total equity portfolio stood at $2.8 billion, up from $2.4 billion a year earlier.
More recently, ADB and International Finance Corporation (IFC) are considering investing in Singapore-based growth equity fund Growtheum Capital Partners. The firm, which focuses on investments in Southeast Asia and India, is raising its second vehicle, at a target of $750 million.
IFC is also considering an equity investment of up to $30 million in India-based diagnostics platform Redcliffe Lifetech. Redcliffe Lifetech is already backed by LeapFrog Investments, Chiratae Ventures India, Impact Fund Denmark, Alkemi Growth Capital, and HealthQuad Fund, among others.
Separately, IFC is set to deploy a $35 million loan to Bangladesh’s PRAN Group to support the expansion of its dairy and agro-processing units.
In fact, IFC plans to deploy $10 billion in India annually by 2030, in key sectors such as renewable energy, urban development, and financial services.
The longer view
The tough macro environment is throwing up what look to be the most attractive opportunities for infrastructure investors in decades, according to global infrastructure firm Morrison. These span energy installations and data centres, as well as the more traditional assets in communications, ports, and transport.
Evergreen structures are nearing the $500-billion AUM mark, up sharply from $90 million just five years ago, according to MSCI. Wealth investors now account for about 20% of this pool, underscoring how rapidly retail participation is scaling in what was once an institutional stronghold. But headline returns tell only part of the story, and there remains a gap in expectations and education among retail investors.
Entrepreneurs and investors alike are seeing big potential in Southeast Asia’s functional nutrition market – its evolution from a niche fitness segment to a mass-market consumer category presents a long runway for growth.
