PE/VC Investments Down 23% In H1 To $27.5 Billion: Report

Private equity and venture capital (PE/VC) funds' investments into Indian entities declined by nearly a fourth to $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 $35.9 billion in investments, while the second half saw values declining to $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 in start-ups but the overall trend for PE/VC investments remains positive.
     
The PE/VC funds raised over $10.2 billion in H1, which augurs well for the investment activity going forward, the report said.
     
The monthly report said at $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 $1.1 billion buyout of HDFC Credila Financial Services and the $297 million majority stake acquisition of Watertec India by Warburg Pincus, the report said.
     
The month recorded 38 exits worth $2.1 billion compared to $2 billion in 18 deals in the year-ago period. A total of $3.8 billion was raised by PE/VC funds during the month, the report added.