Private equity, venture capital investments falls 5 pc to USD 3.9 billion in July: Report

Private equity and ‘ investments in the country declined 5 per cent to USD 3.9 billion across 59 deals in July, a report said on Thursday.

While overall investments were lower than the USD 4.1 billion in July last year, the amount was 17 per cent higher than June this year, as per the report by industry lobby IVCA and consultancy firm EY. The number of transactions was down 26 per cent year-on-year (y-o-y) to 59 in July while month-on-month it slipped 20 per cent. 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.

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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 USD 2.5 billion across five deals as against USD 1.6 billion in the same number of deals a year ago, the report said. Investments into startups declined sharply to USD 553 million across 37 deals in July from USD 821 million in 55 deals in the year-ago period. In terms of sectors, industrial products was at the top with USD 1.6 billion on the back of large investment by GIC in Gemstar Infra, followed by healthcare at USD 901 million.

In June, there were 16 exits worth USD 2.4 billion as against 9 exits valued at USD 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 USD 234 million in July from USD 866 million in the year-ago period.