As per the report, there was a notable increase in buyout deals, constituting $12 billion in 2023, driven by conglomerate restructuring, platform creation, and operational enhancements.
Praxis Global Alliance, a global consulting firm, unveiled its latest publication, ‘India Private Investments Report 2024', indicating India's resilient trajectory amidst global economic headwinds. The report underscores India's ascent as a prominent player in the global economy, projected to secure the position of the third-largest economy by the decade's end. Investors pumped in $57 billion worth of investments in the previous calendar year across 1,301 deals, according to the report.
Key sectors such as energy and renewables, engineering and construction, real estate, healthcare and life sciences, and BFSI witnessed substantial investment inflows, recording 59 per cent of the total private credit deal value in India in 2023. The report attributes this investment climate to India's dynamic regulatory framework, robust domestic capital market, and significant retail investor base, which fueled an unprecedented surge in IPO deal volumes during 2023.
Drawing insights from around 50 private credit investors, the report offers a comprehensive analysis of the ecosystem’s evolution, highlighting shifts in deal-making strategies, fundraising, and exit trends, along with a forward-looking outlook for 2024.
The top takeaways from the insightful report include:
1. India's resilience amid global economic slowdowns, with a noteworthy US$57 billion invested across 1,301 deals in 2023.
2. A 29 per cent increase in the average deal size, driven by a surge in large deals (21 deals exceeding $500 million compared to 11 in 2022).
3. Continued strength in sectors such as healthcare, consumer and retail, manufacturing, benefiting from the China+1 strategy, and robust performance in export-oriented IT/SaaS segments.
4. Growing investments in ESG and climate initiatives, with green deals witnessing a substantial increase to $8 billion in 2023.
5. A notable increase in buyout deals, constituting $12 billion in 2023, was driven by conglomerate restructuring, platform creation, and operational enhancements.
6. There has been a significant shift among limited partners (LPs) and sovereign wealth funds (SWFs) towards direct investments in India, with investments rising from $2.3 billion in 2022 to $6 billion in 2023.
Madhur Singhal, Managing Partner, Private Capital, Praxis Global Alliance, said, “India's private investment landscape continues its long-term growth journey, defying global economic headwinds. This robust performance underscores India's emergence as a key player on the world stage, poised to become the third-largest economy by the end of the decade. The booming sector has demonstrated adaptability and innovation, attracting 196 new PE/VC investors in 2023.”