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PE-VC investments in Q2'22 decline 24% to $11.6 Billion

Private Equity-Venture Capital (PE-VC) investments in India during the quarter ended June 2022 (Q2'22), at $11.6 Billion across 322 deals, registered an over 23.7% decrease compared to the same period in 2021 (which saw $15.2 Billion being invested across 264 deals). The investment amount was also down almost 28.1% compared to the immediate previous quarter (which saw $16.1 Billion being invested across 391 deals) and marked three continuous quarters of decline, shows data from Venture Intelligence, a research service focused on private company financials, transactions, and their valuations.

However the PE-VC investment figures for the first 6 months of 2022 - at $27.6 Billion (across 713 deals) - was 16% higher compared to the same period in 2021 (which saw $23.9 Billion being invested across 526 deals).

Fewer Unicorns

The latest quarter saw the minting of 4 new Unicorns - Leadsquared, Purplle, PhysicsWallah, and Open Financial Technologies - compared to 11 in Q2'21 and 14 in the immediate previous quarter. Overall, Unicorn Startups in India attracted close to $8.5 Billion worth of investments in H1'22, - down by 16% compared to the same period last year (which saw $10.1 Billion being invested in Unicorn Startups).

The $805 million investment into mobile-based Content and News aggregator Unicorn – Dailyhunt (from Sumeru Ventures, Luxor Capital, Ontario Teachers Pension Plan, Sofina, Baillie Gifford, and CPPIB) - accounted for 7% of PE-VC investment pie in Q2'22. The other top PE-VC deals of Q2'22 included the $775 million purchase of six toll road projects from Welspun Enterprises by Actis and the $593 million acquisition of IDFC AMC by a consortium comprising private equity investors GIC, ChrysCapital, and others. This was followed by a $304 million pre-IPO fundraise by logistics tech startup Delhivery and a $285 million fundraise by Hindustan Ports, a local arm of UAE-based DP World operating five container terminals in India.

By Industry

IT & ITeS companies accounted for $6.3 Billion of the total investment pie in Q2'22, lower by 39% when compared with Q2'21 (which saw $10.4 Billion being invested).  This was led by the $805 million fundraise by Dailyhunt (from Sumeru Ventures, Luxor Capital, Ontario Teachers Pension Plan, Sofina, Baillie Gifford, and CPPIB)  and the $270 million raised by Neobank Stashfin (from Altara Ventures, Uncorrelated Ventures, Abstract Ventures, Snow Leopard Technology Ventures, and others). Chinese technology giant Tencent acquired an additional stake worth $264 million in e-commerce player Flipkart from the latter's co-founder Binny Bansal.

The BFSI industry attracted about $1.3 Billion in Q2'22 - a 88% spike compared to the $0.7 Billion in Q2'21. The acquisition of IDFC AMC by a consortium comprising private equity investors GIC, ChrysCapital, and others for $593 million topped the BFSI list, followed by ADIA’s $282 million investment in IIFL Home Finance for a 20% stake.

The Healthcare & Life Sciences industry saw $900 million worth of investments in Q2'22, down by 39% compared to the $1.5 Billion invested in Q2'21. ADIA invested $262 million in Ahmedabad-based Intas Pharmaceuticals for a 3% stake. This was followed by a $136 million investment in Dr. Agarwals Healthcare by TPG Growth and Temasek.

Venture Intelligence is India's longest-serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital, and M&A) & their Valuations in India.

(Venture Intelligence Subscribers will be mailed detailed reports of the PE-VC action during Q2'22 in the next few days.)

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