October 27, 2023
The third quarter of this year witnessed investments worth US$ 13.6 billion in 209 deals
This quarter witnessed 31 large deals amounting to US$ 10.7 billion
The life sciences sector has attracted a substantial sum of US$ 22.1 billion in PE/VC investments since 2018
Secondary deals have reached an all-time high of US$ 5.2 billion, and Private Investment in Public Equity (PIPE) investments in 2023 are also at an all-time high
Private equity (PE) and venture capital (VC) investments in India increased by 60% year-on-year (YoY) in the July-September quarter of 2023, reaching a total of US$ 13.6 billion, according to a report by Ernst & Young (EY) and Indian Private Equity and Venture Capital Association (IVCA).
The report reveals that the third quarter of this year witnessed investments worth US$ 13.6 billion in 209 deals, marking a significant 60% rise compared to the investments made in the third quarter of 2022.
However, when assessed sequentially, the report notes that the deal value for the July-September quarter was 5% lower than that of the April-June quarter. Furthermore, the number of deals during the July-September quarter experienced an 18% reduction when compared to the same period in the previous year.
Experts attribute the growth in total PE/VC investments in the third quarter of 2023 to an 88% increase in pure-pay PE/VC investments. This quarter witnessed 31 large deals amounting to US$ 10.7 billion, a significant surge compared to the 15 large deals worth US$ 4.8 billion in Q3 2022.
The report also highlights that the life sciences sector has attracted a substantial sum of US$ 22.1 billion in PE/VC investments since 2018, with roughly equal allocations between pharmaceuticals and healthcare. The early years were primarily driven by pharmaceutical investments, but post-pandemic, healthcare investments have taken the lead.
In Q3 2023, growth investments reached US$ 4.5 billion, followed by buyouts at US$ 3.5 billion. Infrastructure emerged as the top sector in Q3 2023, recording US$ 3.9 billion in investments, primarily due to investments in the renewable energy sector.
Despite the increasingly uncertain global macroeconomic landscape, there is optimism that Indian PE/VC investments in 2023 will surpass the levels seen in 2022, given the strong deal pipeline.
Source: Economic Times