Shillong, July 3: Private equity-venture capital (PE-VC) investments in India during the second quarter of 2023 (Q2’23) reached $9.85 billion across 182 deals, indicating a 33% decrease compared to the same period in 2022, which recorded $14.6 billion invested across 371 deals.
However, the investment amount saw a 7% increase compared to the immediate previous quarter, where $5.7 billion was invested across 181 deals, according to data from Venture Intelligence.
Arun Natarajan, Founder of Venture Intelligence, noted that big-ticket private equity investors are showing more confidence in investing in fundamental sectors such as healthcare, infrastructure, manufacturing, and financial services at this time.
He also expressed optimism for internet and mobile companies, citing new investments in unicorns like Infra.Market and Lenskart, as well as the significant accumulation of uninvested capital by India-dedicated VC firms, suggesting a potential thawing of the funding winter in the second half of the year.
In Q2’23, the $2 billion investment by Singapore’s Temasek Holdings in Manipal Hospitals accounted for 20% of the overall PE-VC investment during that period.
Other notable deals included Baring Asia and ChrysCapital’s $1.1 billion acquisition of Mumbai-based education loans provider HDFC Credila and Canadian firm Brookfield’s $1 billion investment in energy platform Avaada Ventures.
Furthermore, there was a $630 million investment in Cube Highways Trust and a $450 million investment in travel and logistics SaaS company IBS Software.
Overall, the PE-VC investment figures for the first half of 2023 amounted to $15.5 billion across 363 deals, marking a 50% decrease compared to the same period in 2022, which recorded $31 billion invested across 800 deals.
During Q2’23, there were 19 mega deals worth $100 million or more, totaling $8 billion. This number was lower compared to Q2’22, which saw 37 such investments worth $10.3 billion, but higher than the immediate previous quarter, which had 17 such deals worth $3.6 billion.