According to assurance, tax and advisory firm Grant Thornton, there were 44 PE transactions last month worth $585 million, as against 97 deals worth $1.26 billion a year ago.
"The month saw PE investment volumes decline to a 32-month low, while deal values declined by more than half year-on-year in the absence of big ticket investments," the report said.
Last month saw only one deal valued over $100 million, while in February 2016, there were five such deals.
Sector-wise, it was the startup/e-comm sector which continued to lead the activity by contributing 80 per cent of the values.
"Regardless of rationalising PE/VC investments, startups continued to show substantial traction contributing more than 68 percent of total deal volumes and 17 percent of deal values," the report said.
In the PE space, the deal of the month was CarTrade raising $55 million from Temasek and a US-based family office.
Other sectors such as media & entertainment, real estate and e-commerce also attracted investments over $50 million during the month.
"The overall activity in February has been slight slow perhaps because of the much awaited Union Budget announcement earlier in the month," Grant Thornton India LLP Partner Prashant Mehra said.
"With the government's proposal to abolish FIPB along with the global uncertainties, India will perhaps see a further surge in inbound investments which should peak in the last quarter of 2017," he added.