The PE/VC investments in 2023 was weighed down by geopolitical uncertainties and tight non-public markets. The variety of offers in 2023 too noticed a decline at 1229, down 24.4 per cent over 1,625 offers in 2022.
This marks the bottom interval by worth for PE/VC investments in India since 2016, when worth of investments stood at $5.2 billion, Elaine Tan, Senior Supervisor, LSEG Offers Intelligence mentioned.
Tan additionally highlighted that the difficult macroeconomic setting resulted in a 50 per cent decline within the complete PE fundraising exercise in India to $ 6.6 billion in 2023.
PE/VC deal exercise was impacted in October-December 2023 with Personal Fairness investments coming in at $ 1.9 billion, down 43.5 per cent from $3.5 billion in the identical quarter in earlier yr.
Within the December 2023 quarter, PE investments amounted to $1.9 billion, reflecting a 43.5 per cent decline from $3.35 billion in This autumn 2022 and a 6.2% enchancment from Q3 2023. Complete variety of offers in This autumn 2023 declined 27.9 per cent to 274 in contrast with 380 in This autumn 2022, LSEG Deal Intelligence information confirmed.
Tan highlighted that substantial capital stays poised for deployment given the file quantity raised by India-based PE funds in 2022 ($13 billion).
“Whereas persistent headwinds could impede development, the elevated investor curiosity in India’s rising sectors, akin to expertise, healthcare, and renewable power, together with the China-to-India narrative, and the expectations for decrease rates of interest in 2024, stand as potential drivers more likely to bolster exercise within the forthcoming yr,” Tan mentioned.
Web Particular and Pc Software program firms proceed to draw most PE curiosity with $ 3.6 billion and $ 1.8 billion invested within the yr 2023.
When it comes to industry-specific investments, Web Particular and Pc Software program have seen the utmost investments coming in 2023 and captured 60 per cent of the market share.
Sum of fairness invested within the Web Particular sector has decreased by 59.2per cent, with the variety of offers falling to 378 from 562 from yr 2022.
Pc Software program (-72.6 per cent y-o-y), Transportation (-46.5 per cent y-o-y), have witnessed a decline within the sum invested as in comparison with 2022. Nevertheless, industries catering to Industrial (13.2 per cent), and Semiconductor/ electronics (70.3 per cent) noticed a rise within the sum of fairness invested, LSEL Offers Intelligence mentioned.
The highest ten non-public fairness offers in India in 2023 are Lenskart Options ($620 million sum of fairness invested); Ola Electrical Mobility Pvt Ltd ($300 million); Serentica Renewables ($250 million); Kiranakart Applied sciences ($231 million); Perfios Software program ($229 million); Zetwerk Manufacturing Companies ($218 million) ; Girnar Insurance coverage ($209.6 million); Vistaar Monetary Companies ($158.3 million); Sona Blw Precision ($149.6 million) and Veritas Finance ($145.6 million).
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