As per the latest EY-IVCA monthly PE/VC roundup, Private equity (PE) and venture capital (VC) investments in India registered a 60 percent year-on-year growth for the quarter July-September to touch USD 13.6 billion.

The report highlighted that the third quarter of 2023 recorded an investment worth USD 13.6 billion across 209 deals, showing a 60 percent growth compared to the investments done in the third quarter (3Q) of 2022.

EY-IVCA: PE/VC Investments Report

However, compared to the sequential basis, deal value was 5 percent lower than in the April-June quarter, according to the report. It added that the number of deals in the third quarter quarter was lower by 18 percent on a year-on-year basis.

Speaking about the development, Vivek Soni, Partner and National Leader, Private Equity Services at EY India, stated that a growth in pure-pay PE/VC investments of around 88 percent strengthened the growth in total investments in Q3 of 2023. The 3Q2023 recorded 31 large deals amounting to USD 10.7 billion compared to 15 large deals worth USD 4.8 billion in 3Q2022, added Soni.

Soni continued, 

“The Indian macro, while showing strong signals in terms of new highs in Index of Industrial Production, GST collections, advance tax collections, and heightened consumer confidence as we get into the festive season, is increasingly being counter-weighted by a deteriorating global macro, driven largely by recessionary fears in the US and Europe.”

Key Highlights from the Report:

• Since 2018, the life sciences sector has attracted USD 22.1 billion in PE/VC investments, virtually equally divided between pharmaceutical and healthcare.

• The third quarter saw the highest growth investments, with USD 4.5 billion, followed by buyouts at USD 3.5 billion.

• Sector-wise, infrastructure gained the top spot in 3Q2023 and recorded USD 3.9 billion in investments, backed by funding in the renewable energy sector.

• Exits, across all deal segments-IPOs, secondary, and strategic deals, amounting to USD 8.6 billion across 85 deals, were recorded in 3Q2023. 

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