Private equity, venture capital investments in India falls 5% to $3.9 billion in July: Report

Private equity and venture capital funds’ investments in the country declined 5% to $3.9 billion across 59 deals in July, a report said on Thursday. While overall investments were lower than the $4.1 billion in July last year, the amount was 17% higher than June this year, as per the report by industry lobby IVCA and consultancy firm EY.

The number of transactions was down 26% year-on-year (y-o-y) to 59 in July while month-on-month it slipped 20%.

Vivek Soni, partner at EY, said sentiment in India for tech sector investments remains “tepid” and fund raising by startups in the country has been sluggish.

The deal momentum is likely to pick up in the second half of 2023, he said, adding that India has emerged as one of the fastest growing economies and its importance is increasing in global supply chains.

Buyouts in value terms were at $2.5 billion across five deals as against $1.6 billion in the same number of deals a year ago, the report said.

Investments into startups declined sharply to $553 million across 37 deals in July from $821 million in 55 deals in the year-ago period.

In terms of sectors, industrial products was at the top with $1.6 billion on the back of large investment by GIC in Gemstar Infra, followed by healthcare at $901 million. In June, there were 16 exits worth $2.4 billion as against 9 exits valued at $322 million a year ago, the report said, adding that exits were at an 11-month high in the reporting month.

The overall fund raising by private equity and venture capital fell to $234 million in July from $866 million in the year-ago period.

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