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India’s I&B sector FDI gains in 9M FY26 despite lower Q3 inflows
ET Bureau | May 6, 2026 6:38 PM CST

Synopsis

Foreign direct investment in India's information and broadcasting sector saw a sharp quarterly decline in Q3 FY26, yet cumulative inflows for the first nine months rose significantly. This overall increase was propelled by substantial investments in major players like Prime Focus, alongside several smaller but notable transactions across the industry.

Foreign direct investment (FDI) in India’s information and broadcasting sector fell sharply year-on-year in the third quarter of FY26 to Rs 471 crore from Rs 1,264 crore in the prior-year period, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT).

However, cumulative inflows for the first nine months of FY26 rose to Rs 6,610 crore compared with Rs 4,786 crore in the same period a year earlier.

The increase in overall inflows was largely driven by a few large transactions. VFX and post-production major Prime Focus emerged as the biggest beneficiary, raising Rs 5,233.33 crore in FDI during the nine months.


In the third quarter, investment activity remained limited to a few deals. IVY Entertainment raised Rs 167 crore from its Dubai-based parent, IVY Entertainment Holdings Limited, while HYBE India Entertainment, the Mumbai-based subsidiary of South Korean entertainment company HYBE, received Rs 87 crore from its parent.

Hyderabad-based People Media Content Development Private Limited secured Rs 132.18 crore from Singapore-based People Tech Group Pte Ltd.

Other transactions during the nine-month period included Inshorts India Advertising and Services, which received Rs 125.86 crore from its Singapore-based parent, Inshorts Pte Ltd. Stage Technologies, which operates the OTT platform Stage, raised over Rs 57 crore from investors including Goodwater Capital V LP (U.S.), TSM Ventures (Singapore) and UnicornDust LLC (U.S.).

Creatormon raised Rs 23.24 crore from Elevation Capital VII Ltd (Mauritius), while Wondrlab India attracted Rs 17.26 crore from Tanas Capital Pte Ltd (Singapore) and Jaroslaw Ziebinski (Poland). Sony Pictures Films India received Rs 42.62 crore from SPE India Films Holding LLC (U.S.).

According to a FICCI-EY report, total deal value in calendar year 2025 stood at Rs 207 billion, marking a 76% year-on-year decline. However, excluding the mega Jio-Star merger transaction in 2024, deal value in 2025 was up by 27% on an adjusted basis.


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