PE, VC investments in India up by 60% in Q3 : Report

Experts attribute the growth in total Private equity (PE) and venture capital (VC) investment to an 88% increase in pure-pay PE/VC investments

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

Recent Articles

India rises to third in global domestic airline market

June 20, 2024

According to an analysis based on OAG data, India has …

Read More

TCS, Infosys, and Airtel ranked among top 100 global brands

June 20, 2024

TCS and Infosys, India’s leading IT services companies, have been …

Read More

US and India strengthen strategic trade and technology ties

June 19, 2024

US NSA Jake Sullivan and Indian counterpart Ajit Doval have …

Read More