Report

India’s PE Market Booms with 310 Transactions and 61.8% Growth in Deal Value in Q1 2024: Mazars Report

• ByStartupStory     |    May 20, 2024

India’s private equity (PE) sector has experienced a remarkable resurgence in Q1 2024, with a significant increase in both transaction volume and deal value, according to a new report by Mazars in India, a global audit, tax, and advisory services firm.

The first quarter of 2024 witnessed 310 PE transactions, totaling approximately $5.2 billion. This represents a 61.8% increase in deal value from Q1 2023, which saw $3.2 billion in investments. The robust activity in Q1 2024 marks the most active quarter since Q4 2022 in terms of deal volume.

Mazars’ latest PE deal tracker report highlights a sharp rise in PE exits, with 50 exits in Q1 2024, compared to just 11 exits in Q1 2023, representing a staggering 354.5% increase. The total value of these exits reached $3.6 billion, underscoring the robust market conditions.

“A quarter marked by the resurgence of mega deals and sectoral diversification, Q1 2024 showcased a vibrant PE landscape where traditional sectors like infrastructure, telecom, healthcare, and energy gained significant funding. The $2 billion ATC acquisition and notable ESG investments underscored a dynamic investment environment,” said Akhil Puri, Partner, Financial Advisory at Mazars in India.

Despite a decline in venture capital (VC) funding, Puri emphasized the positive outlook for India’s startup ecosystem, citing resilient economic fundamentals and supportive policies. “The future looks promising with India’s resilient fundamentals and policy support fostering a conducive environment for startup growth and global competitiveness,” he added.

Angel and seed investments remained the largest category within the PE deal landscape in Q1 2024, accounting for 52.6% of the overall deals, a slight decrease from 56.7% in Q1 2023. However, the deal value within this category surged by 29.0% to $307.3 million, up from $238.2 million in the same period last year. The number of angel and seed transactions increased by 17.3% to 163 deals, compared to 139 deals in Q1 2023.

Venture capital was the second most active category, representing 26.7% of the overall deal value and 30.3% of the total number of transactions. The PE investments category, however, dominated in terms of overall deal value, accounting for 43.2%, a significant increase from the 24% share in Q1 2023.

This vibrant PE landscape, highlighted by a mix of mega deals and a diversified sectoral approach, sets a promising tone for the rest of the year. With infrastructure, telecom, healthcare, and energy sectors attracting significant investment, India’s PE market is poised for continued growth and dynamism.

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