Indian PE/VC Investments Dip to $3.4 Billion in October, Reflecting Global Uncertainty

• ByStartupStory     |    November 22, 2023

According to a report by industry lobby grouping IVCA and consultancy firm EY, Private Equity and Venture Capital (PE/VC) investments saw a decline to USD 3.4 billion in October. This marks a 3% decrease by value compared to the year-ago period and a 19% drop from September’s USD 4.2 billion. The number of deals also decreased to 70 transactions in October, down from 80 in the same period last year and 83 in the previous month.

Vivek Soni, a partner at the consultancy firm, noted, “Although the Indian consumption story continues to remain strong, the increase in uncertainty on account of global factors and impending state and central elections in India seem to be slowing down progress in deal pipeline activity.” He expressed a “cautiously optimistic” outlook, mentioning that PE/VC investments, particularly in the startup space, are lacking momentum.

October witnessed nine large deals totaling USD 2.4 billion, a 9% increase from the previous year. The report highlighted Abu Dhabi Investment Authority’s (ADIA) significant bet of USD 598 million on Reliance Retail Venture as the largest deal. Startup investments in October amounted to USD 1.3 billion, more than double the figure from the same period last year.

From a sectoral perspective, retail and consumer products led with USD 623 million of PE/VC investments across five deals, primarily driven by ADIA’s investment in Reliance Retail Venture. The real estate sector followed, attracting USD 601 million across six deals.

The report also mentioned 17 exits in October worth USD 1.3 billion, compared to USD 1.6 billion across 15 deals in the previous year. The month recorded a total fundraise of USD 2.4 billion, surpassing October 2022’s USD 2.2 billion and September 2023’s USD 1.1 billion.

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