Shillong, October 13: A recent report revealed a substantial decrease in deal activity within the Indian startup sector for the year-to-date in 2023 compared to the same period in 2022.
According to Grant Thornton Bharat’s ‘Q3 Deal Tracker Report,’ there was a 39 percent reduction in the number of deals and a 68 percent decrease in their total values.
Notably, the mergers and acquisitions (M&A) landscape saw a sharp decline, with values plummeting by 83 percent this year. This drop can be attributed to the absence of some massive billion-dollar deals that occurred in the year-to-date period of 2022.
As per IANS, in the private equity (PE) sector, there was a 40 percent reduction in the number of deals and a 28 percent decrease in their values compared to the same period in 2022.
During the third quarter of 2023 (July-September), the Indian startup sector, along with e-commerce and IT & ITeS, played a leading role, accounting for 64 percent of the total deals.
Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat, emphasized the positive impact of growth-oriented policies, reduced inflation, and increased infrastructure spending on India’s domestic growth, which is expected to fuel deal activities. This trend is particularly apparent in traditional sectors such as pharmaceuticals and healthcare, as well as the rapidly evolving digital transformation landscape, including e-commerce and IT & ITES.
The report also expressed optimism regarding India’s economic prospects for 2023-24, supported by these growth-oriented policies, subdued inflation, and heightened investments in infrastructure.
