Private Equity, Venture Capital investments in Indian companies declined to $3.4 billion in October: Report

Mumbai: Investments by private equity (PE) and venture capital (VC) funds in Indian companies declined by nearly three percent to $3.4 billion in October. This information was given in a report on Tuesday. According to a joint report by industry lobby group IVCA and consulting firm EY, by value, PE and VC bets in October were three percent less than $3.5 billion in the same period a year ago. At the same time, PE and VC investment was 19 percent less as compared to September’s $4.2 billion.

The number of deals also declined to 70 transactions in October compared to 80 investment deals in the same period a year ago, the report says. This number was 83 in September. Vivek Soni, partner at EY, said, “While Indian consumption remains strong, investment deal progress has slowed due to global factors and increased uncertainty due to the impending elections in India.” While remaining optimistic, he said that the pace of PE and VC investment is not gaining momentum.

Investments worth $1.3 billion in startup companies came in October, which is more than double the amount a year ago. According to the report, nine major deals worth a total of $2.4 billion were struck in October, which is nine percent more than the same period a year ago. Abu Dhabi Investment Authority (ADIA) infused $598 million in the Reliance retail venture, the largest investment deal. The retail and consumer products segment led the way with five investment deals worth $623 million. The real estate segment stood second with investments of $601 million in six deals. According to the report, a total of $ 2.4 billion was raised in the month of October, while $ 2.2 billion was raised in October 2022 and $ 1.1 billion in September 2023.