Drop by 35% in PE/VC investments
In April, private equity and venture capital investments fell by 35% to $4.4 billion, down from $6.8 billion the previous year, according to a report by EY and IVCA. However, the number of deals increased by 56%, reaching 98. Investor caution is linked to global uncertainties and the ongoing Indian general elections. Large deals exceeding $100 million decreased by 48% to $3.1 billion across nine transactions.
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May 29, 2024
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In April 2024, private equity (PE) and venture capital (VC) investments in India dropped by 35% to $4.4 billion compared to $6.8 billion in April 2023, according to a report by EY and IVCA. Despite the decline in investment value, deals increased by 56% to 98.
PE/VC investors are treading with caution, a stance influenced by global uncertainties, geopolitical tensions, and the ongoing Indian general elections, as pointed out by Vivek Soni, a partner at the consultancy firm. He added that this subdued activity will likely persist until the election outcome is decided.
The numbers in short
- Nine large deals (over $100 million each) totalling $3.1 billion, a 48% decrease from $6 billion in April 2023.
- Buyouts doubled to $2.1 billion across five deals, up from $783 million in four deals in April 2023.
- Growth investments dropped by 76% to $884 million.
- Investments in startups grew by 11% to $756 million across 54 deals.
- The financial services sector led with $1.8 billion in investments across 17 deals, followed by real estate ($849 million), healthcare ($489 million), and e-commerce ($341 million).
- Exits also declined, with 21 exits worth $907 million, compared to $1.6 billion across 15 deals in the previous year. The largest exit was Bain Capital's $428 million sale in Axis Bank.
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