News Indian Bulletin

In Q3’23, PE-VC investments fell 15%

<p>According to statistics from Venture Intelligence, a research firm specializing in private business financials, transactions, and their valuations, private equity-venture capital (PE-VC) funds spent $6 billion (across 139 acquisitions) in India-based companies during the quarter ending September 2023 (Q3’23).<img decoding=”async” class=”alignnone wp-image-215068″ src=”×500.jpg” alt=” in q323 pe vc investments fell 15 1683114521 untitleddesign 2023 05 03t171751703 1″ width=”1392″ height=”928″ srcset=”×500.jpg 750w,×682.jpg 1024w,×512.jpg 768w,×1024.jpg 1536w,×100.jpg 150w, 2000w” sizes=”(max-width: 1392px) 100vw, 1392px” title=”In Q3'23, PE-VC investments fell 15% 6″></p>
<p>Comparatively, $7 billion was spent in 327 agreements over the same time period in 2022, a 15% decrease.</p>
<p>Additionally, the amount spent fell by 49% from the immediately preceding quarter (during which $11.7 billion was invested across 202 agreements).</p>
<p>The recent weeks have seen international investors like KKR and India-focused companies like Westbridge Capital, MEMG Family Office, IIFL AMC, and India Resurgence Fund ramping up their investing activities. However, it is evident that there will not be a return to the dizzying heights of 2021 anytime soon. A few more “confidence building” transactions will aid in catalyzing the “trickle down” effect into private markets and earlier stage companies due to the continued strength in the public markets (including IPOs) and the significant amounts of “dry powder” available with India-dedicated funds, according to Arun Natarajan, Founder, Venture Intelligence.</p>
<p>The amount of PE-VC investments made in the first nine months of 2023 ($23.6 billion across 542 transactions) was 38% less than it was during the same time in 2022 ($38.1 billion across 1,141 deals).</p>
<p>16 mega deals ($100 M+ rounds) totaling $4.5 billion were completed in the third quarter of 23 compared to 13 such investments ($3.8 billion) in the third quarter of 22 and 22 such transactions ($9.7 billion) in the immediately preceding period.</p>
<p>17% of the total PE-VC investment market in Q3’23 was made up of the $1 billion investment by Qatar Investment Authority in Reliance Retail Ventures. The other major PE-VC transactions of Q3’23 were The Carlyle Group investing $500 million in engineering services BPO business Quest Global and Baring Asia’s $700 million acquisition of reproductive clinic network Indira IVF.</p>
<p>These were followed by two investments from the major private equity firm KKR: a $250 million investment in Reliance Retail Ventures and a $275 million investment in the logistics software company Leap India.</p>
<p>With the rapid commerce company Zepto, one new unicorn was created in the third quarter of 23; this ended an 11-month lull in the emergence of privately held businesses with a valuation of $1 billion or more.</p>
<p>Overall, unicorn startups in India attracted close to $400 million in Q3’23, which is down by 44% from the previous quarter (where unicorn startups attracted $700 million) and 16% from the same period last year (when unicorn startups attracted $500 million).</p>
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