Latest data from LSEG Deals Intelligence shows private equity investment in India reached a seven-quarter high of $3.64 billion in April-June 2024, up sequentially from $2.08 billion recorded in January-March 2024. 75 percent more.
The latest quarterly reading is 31 percent higher than the $2.8 billion PE investment made in the same quarter last year.
However, in the first half of this calendar year, PE investments were down 3.6 per cent to $5.72 billion ($5.93 billion), according to LSEG Deals Intelligence.
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The number of deals in the quarter under review increased by 2.7 per cent sequentially to 299 from 291 in the January-March quarter this year. However, the number of deals declined by 15.3 per cent on a year-on-year basis from 353 recorded in April-June 2023.
Ellen Tan, senior manager, LSEG Deals Intelligence, said private equity investment in India has seen a significant improvement in the second quarter of 2024. The total amount of equity invested is $3.6 billion, which is a 75 percent sequential increase from Q1 2024.
This brings the total amount of equity invested during the first half of 2024 to $5.7 billion, down 3.6 percent from a year ago.
âNevertheless, India remains an important market for deploying private equity capital, accounting for at least 22 per cent of total equity invested in Asia Pacific during the first half of 2024, compared to the first half of last year. had 19 percent market share”, Tan said.
Private equity and venture capital firms are focusing on India given its strong economic growth, thriving domestic equity capital market and dynamic start-up ecosystem.
Tan said the expanding consumer market offers ample growth opportunities in various sectors, including technology, healthcare, renewable energy and infrastructure.
Region-Specific PE Flow
Internet-specific, financial services and computer software companies attracted maximum PE interest, with investments of $2,143 million, $931 million and $901 million in April-June 2024.
These sectors had about 50 per cent market share of total PE investments in India in January-June 2024.
The amount of equity invested in the Internet-specific sector declined marginally in value terms in the first half of this year, but the number of deals fell sharply to 170 from 214 in the same period last year.
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In the quarter under review, the amount invested in computer software and transportation declined by 43 percent and 45 percent, respectively.
However, the latest data showed that both consumer-related (222.1 percent) and business services (743.8 percent) industries have seen an increase in the amount of equity invested.
fundraising
Fundraising activity for India-based private equity funds saw a 49 per cent decline in January-June 2024 to $2.71 billion ($5.32 billion).
number of firms
The total number of PE firms investing in India declined by 1.9 per cent to 567 from January to June 2024, compared to 578 in the same period last year. The number of companies investing in India from January to March 2024 was 367.
(TagstoTranslate)Financial Services PE India(T)PE Firms India Economic Growth(T)Venture Capital India Startups(T)Internet Sector PE Investments(T)India Private Equity Investments Q1
