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PE-VC investments decline 66% to $5.6 B in Q1'23

Press Release:

Private Equity - Venture Capital (PE-VC) firms invested over $5.6 Billion (across 184 deals) in Indian companies during the first three months of 2023, shows data from Venture Intelligence, a research service focused on private company financials, transactions, and their valuations. (Note: These figures include Venture Capital type investments, but exclude PE investments in Real Estate).

The investment amount represents a 66% fall over the $16.4 Billion (across 422 deals) invested in the same period during 2022 and also down by 41% when compared to the immediate previous quarter (which witnessed $9.6 Billion being invested across 236 deals). Deal volumes in Q1'23 also declined 56% compared to Q1'22 and was down by 22% compared to the immediate previous quarter. 


Q1’23 witnessed 16 mega deals ($100 M+ rounds) worth $3.4 Billion, compared to 42 such investments (worth $11 Billion) in Q1’22 and 21 such deals (worth $7 Billion) in the immediate previous quarter. 

The largest investment in Q1’23 was the $700 million investment in renewable energy producer Greenko Group by Singapore’s  GIC, Abu Dhabi Investment Authority (ADIA) and other investors. The other top investments included ADIA’s $500 million investment in omnichannel eyewear retailer Lenskart and General Atlantic’s $350 million investment in PhonePe (as part of the fintech unicorn's ongoing round). This was followed by Carlyle Group’s acquisition of skincare and beauty platform VLCC Wellness for $300 million.


By Industry

IT & ITeS topped the industry table attracting $2.3 Billion across 117 deals (a 73% fall from the $8.5 Billion across 300 deals in Q1'22). Deals in the tech industry were led by the mega investments in Lenskart, Phonepe and insurtech startup InsuranceDekho ($150 million investment led by Goldman Sachs and TVS Capital Funds).


The Energy industry came in next, attracting $1.3 Billion in Q1’23 led by the $700 million investment in the Greenko Group. This was followed by CPPIB’s investment in renewable energy firm Renew Power (totaling $400 million across two tranches), and the solar and agri waste-to-energy converter SAEL’s $60 million fundraise from Norfund.

The Healthcare & Life  Sciences industry attracted about $782 million across 18 deals during Q1’23 - a 27% decrease from the $1.1 Billion invested across 25 deals in Q1'22. Investments in the sector were topped by two buyouts: Carlyle’s of VLCC Wellness followed by TA Associates’ of Synokem Pharmaceuticals.  

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 Q1 2023 in the next few days.)

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