Indian PE, VC Investment Slumps by 35% in 2023, Falling to USD 39 Billion

Indian private equity and venture capital investments declined by 35% in 2023 to USD 39 billion. Private equity investments dropped by 18% and venture capital investments fell sharply by 62%. The decline mirrors global trends. Despite the decline, 2023 witnessed a record number of exits with values rising by 15% to USD 29 billion, showcasing India's resilience in the face of global economic challenges.

The Indian private equity and venture capital investments declined by about 35 per cent to around USD 39 billion in 2023 from USD 62 billion in 2022, according to a joint report by Bain & Company and IVCA released on Thursday.

The private equity (PE) investments in India dropped by 18 per cent to USD 29.6 billion from a peak value of USD 36 billion in 2022.

The drop in VC investments was much sharper, with total investments at USD 9.6 billion in 2023 versus USD 25.7 billion in 2022.

''Mirroring the global trend, Indian private equity and venture capital (PE-VC) investment softened by about 35 per cent from approximately USD 62 billion in 2022 to around USD 39 billion in 2023, returning to pre-Covid-19 activity levels,'' the report said.

The report saw 2023 as a marquee year for Indian exits with exit values soaring by 15 per cent to USD 29 billion with sale of shares in 340 entities.

''In a year marked by global economic uncertainties, India's private equity landscape demonstrated remarkable resilience, with exit values surging by approximately 15 per cent to reach USD 29 billion in 2023. ''With India emerging as a key player in Asia-Pacific PE-VC activity, the influx of capital from both domestic and global funds signifies a promising future,'' Indian Venture and Alternate Capital Association (IVCA) President Rajat Tandon said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)