Private equity investments in June quarter decline by 33 per cent

The investment amount however rose 7 per cent compared to the immediate previous quarter which saw $5.7 billion being invested across 181 deals

New Delhi: Private Equity-Venture Capital (PE-VC) investments in India during the quarter ended June 2023 (Q2’23), at $9.85 billion across 182 deals, registered a 33 per cent decrease compared to the same period in 2022 which saw $14.6 billion being invested across 371 deals.

The investment amount however rose 7 per cent compared to the immediate previous quarter which saw $5.7 billion being invested across 181 deals, shows data from Venture Intelligence.

---

Clearly, Big Ticket Private Equity investors have far more confidence in investing behind basic sectors like Healthcare, Infrastructure, Manufacturing and Financial Services at this point,” noted Arun Natarajan, Founder, Venture Intelligence.

“From the perspective of Internet & Mobile companies, the new investments in Unicorns like Infra.Market and Lenskart and also the significant build of ‘Dry Powder’ (un-invested capital) with India-dedicated VC firms, provides scope for optimism that the funding winter will begin to thaw in the second half of the year.,” he added.

The $2 billion investment by the Singapore government owned Temasek Holdings in Manipal Hospitals accounted for 20 per cent of the overall PE-VC investment pie in Q2’23.

The acquisition of Mumbai-based education loans provider HDFC Credila by Baring Asia and ChrysCapital for $1.1 billion and Canadian investment firm Brookfield’s $1 billion investment in energy platform Avaada Ventures were the other top PE-VC deals of Q2’23.

These were followed by a $630 million investment in Cube Highways Trust and a $450 million investment in travel and logistics SaaS company IBS Software.

The PE-VC investment figures for the first 6 months of 2023 – at $15.5 billion (across 363 deals) – was 50% lower compared to the same period in 2022 (which saw $31 billion being invested across 800 deals). The Q2 23 witnessed 19 mega deals ($100 M+rounds) worth $8 billion, compared to 37 such investments (worth $10.3 billion) in Q2’22 and 17 such deals (worth $3.6 billion) in the immediate previous quarter.