Banking News

PE/VC investments down 23 pc in H1 to USD 27.5 billion: Report


Private equity and venture capital (PE/VC) funds’ investments into Indian entities declined by nearly a fourth to USD 27.5 billion in January-June 2023 against the year-ago period, a report said on Thursday. However, in value terms, investments were up 33 per cent against July-December 2022, the report by industry lobby Indian Venture and Alternate Capital Association (IVCA) and consultancy firm EY said.

The first half (H1) of 2022 saw USD 35.9 billion in investments, while the second half saw values declining to USD 20.6 billion.

The number of deals declined 44 per cent compared to the year-ago period and 16 per cent sequentially to 427, the report said.

EY partner Vivek Soni said there has been a dip in investments into startups but the overall trend for PE/VC investments remains positive.

The PE/VC funds raised over USD 10.2 billion in H1, which augurs well for the investment activity going forward, the report said.

The monthly report said at USD 3.1 billion, June witnessed a 42 per cent decline in investments, while the figure was 9 per cent lower than May. The top deal in June was BPEA EQT and Chryscapital’s USD 1.1 billion buyout of HDFC Credila Financial Services and the USD 297 million majority stake acquisition of Watertec India by Warburg Pincus, the report said.

The month recorded 38 exits worth USD 2.1 billion compared to USD 2 billion in 18 deals in the year-ago period. A total of USD 3.8 billion was raised by PE/VC funds during the month, the report added.


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