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Private equity investments activity in India fell 33.1 per cent in value terms in first nine months (Jan-Sept 2022) this calendar year to $19.58 billion against $29.25 billion recorded in the same period last year, data with Refinitiv, a LSEG business, showed.
Although sum of equity invested saw a sharp decline, there was an increase in the number of deals at 1,171 (up 7.2 per cent) and the number of companies receiving investments at 1,061 (up 14 per cent) on a year-on-year basis.
On a quarterly basis, PE investments in July-September 2022 stood at $3.84 billion — down 43.6 per cent over investment level of $6.80 billion in April-June 2022 quarter. However, there was a sequential increase in the number of deals and the number of companies receiving PE investments.
On a year-on-year basis, the private equity flows was sharply down 77.5 per cent in July-September 2022 compared with $17.05 billion in the same period last year.
Elaine Tan, Senior Analyst at Refinitiv, highlighted that there was growth in number of deals and number of companies receiving investment injections in Jan-September 2022 compared with a year ago, as investors increasingly shift their focus to other high-growth markets such as India.
She noted that Internet Specific and Computer Software companies continued to take up majority of the activity, accounting for 68.6 per cent of the private equity investments in India so far this year. “Value creation through digital transformation and increasing depth in India’s innovative start-up ecosystem continues to drive activity”, Tan added.
FUND RAISING IN INDIA
Meanwhile, fundraising activity for funds located in India recorded a 123.5 per cent increase to $8.97 billion in nine months ended September 2022 from $4.02 billion in the nine months ended September 2021.
“This pushes the substantial capital waiting to be deployed as India-based PE fundraising activity totalled $26 billion from 2019 to first nine months of this year”, Tan added.
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