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PE-VC Investments Increase To $5.2 Billion In Aug As Large Deals Shoot Up

There were 13 large deals of more than $100 million each, aggregating to $4.5 billion in August

PE-VC Investments Increase To $5.2 Billion In Aug As Large Deals Shoot Up
POSTED ON September 21, 2023 10:48 AM

Venture capital and private equity funds' investments increased to $5.2 billion across 67 deals in August, a report said on Wednesday. 

The investments are more than double the $2.3 billion witnessed in August 2022, even though the number of transactions has declined from 32 in the year-ago period, as per the monthly report by the industry lobby grouping Indian Private Equity and Venture Capital Association (IVCA) and consultancy firm EY. 

The consultancy firm's partner Vivek Soni said funds are skeptical as growth remains elusive for many start-ups and valuations remain high

"With many sovereign wealth funds, especially from the Gulf nations, setting up shop in India and also increasing their exposure to Indian start-ups, the medium to long-term outlook remains positive for the Indian start-up sector despite the current short-term issues of tepid growth and governance troubles at some start-ups," he said. 

There were 13 large deals of more than $100 million each, aggregating to $4.5 billion in August, which is a 416 per cent jump from the same in the year-ago period. 

Fourteen deals involving investments of $2.4 billion were classified as growth investments as compared to just $176 million in nine deals in August 2022. 

Start-up investments declined by 62 per cent to $387 million across 27 deals in August 2023 as compared to $1 billion across 63 deals in August 2022, the report said. 

Infrastructure emerged as the top sector in August 2023, on the back of the large investment by GQG Partners Inc in Adani Power Limited, recording  $1.8 billion in PE/VC investments across six deals. It was followed by the retail and consumer products sector, which saw $1 billion in four deals. 

August 2023 recorded 37 exits worth  $4.3 billion, the highest value of exits in 22 months, compared to $3.2 billion recorded in August 2022 across 28 deals. PE/VC funds raised $1.5 billion compared to $583 million in August 2022, as per the report. 

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