PE/VC investments surge 60% YoY to $13.6B in July-Sept: Report
- ByStartupStory | October 27, 2023
Private equity (PE) and venture capital (VC) investments experienced substantial growth in the July-September quarter, with a 60% year-on-year increase, reaching $13.6 billion, as indicated in the latest EY-IVCA monthly PE/VC report. This quarter saw 209 deals, marking a 60% surge compared to the same period in 2022. However, on a sequential basis, the deal value decreased by 5% compared to the April-June quarter, and the number of deals in this quarter was 18% lower than the previous year.
Vivek Soni, Partner and National Leader, Private Equity Services at EY India stated, “A pickup in pure-pay PE/VC investments of around 88% bolstered the growth in total PE/VC investments in 3Q2023, which recorded 31 large deals aggregating $10.7 billion compared to 15 large deals worth $4.8 billion in 3Q2022.”
In terms of sector focus, the life sciences sector has attracted substantial PE/VC investments since 2018, totaling $22.1 billion, evenly distributed between pharmaceuticals and healthcare. While the early years were dominated by pharmaceutical investments, healthcare investments have taken the lead in the post-pandemic period.
The report also notes that growth investments reached $4.5 billion in 3Q2023, followed by buyouts at $3.5 billion. The infrastructure sector, driven by investments in renewable energy, stood out as the top sector in 3Q2023, with a total investment of $3.9 billion.
Vivek Soni commented on the macroeconomic factors, noting that while India’s domestic indicators are positive, global economic concerns, particularly in the US and Europe, are weighing on the overall outlook.
He said, “The Indian macro, while showing strong signals in terms of new highs in Index of Industrial Production, GST collections, advance tax collections and heightened consumer confidence as we get into the festive season, is increasingly being counter-weighted by a deteriorating global macro, driven largely by recessionary fears in the US and Europe.”
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The report also highlights the potential impact of rising crude oil prices on global inflation and the Indian economy. Soni emphasizes the importance of considering these downside risks as the Indian PE/VC sector continues its fragile recovery.
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