According to the latest EY-IVCA monthly PE/VC roundup, private equity (PE) and venture capital (VC) investments in India had a significant increase in the July-September quarter. The amount reached USD 13.6 billion, showing a growth of 60 per cent compared to the same period last year. However, when compared to the previous quarter, the deal value was slightly lower. There was also a decrease in the number of deals during this period.
The surge in investments was mainly due to a substantial increase in pure-pay PE/VC investments, which grew by approximately 88 per cent. The life sciences sector, particularly pharmaceuticals and healthcare, attracted a significant amount of investment since 2018. In terms of investment types, growth investments and buyouts were dominant and the infrastructure sector, specifically renewable energy, received the most investment.
The report highlights positive signals in the Indian macroeconomic conditions, such as new highs in industrial production, tax collections and consumer confidence. However, global macroeconomic concerns, especially fears of a recession in the US and Europe, pose risks to the Indian economy. The startup sector is facing challenges, but there is optimism about PE/VC investments surpassing previous levels due to a strong deal pipeline.
In the third quarter of 2023, there were exits from investments totaling USD 8.6 billion across 85 deals. Exits showed growth in IPOs, secondary exits and strategic exits.
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