Private Equity-Venture Capital (PE-VC) investments in India during
the quarter ended June 2023 (Q2'23), at $9.85 Billion across 182
deals, registered a 33% decrease compared to the same period in
2022 (which saw $14.6 Billion being invested across 371 deals). The
investment amount however rose 74% compared to the immediate
previous quarter (which saw $5.7 Billion being invested across 181
deals), shows data from Venture Intelligence, a research service focused on private company financials,
transactions, and their valuations.
The PE-VC investment figures for the first 6 months of 2023 - at
$15.5 Billion (across 363 deals) - was 50% lower compared to the same
period in 2022 (which saw $31 Billion being invested across 800
deals).
Q2’23 witnessed 19 mega deals ($100 M+ rounds) worth $8 Billion,
compared to 37 such investments (worth $10.3 Billion) in Q2’22 and
17 such deals (worth $3.6 Billion) in the immediate previous
quarter.
The $2 Billion investment by the Singapore government owned Temasek Holdings in Manipal Hospitals accounted for 20% of the overall PE-VC investment pie in Q2'23. The acquisition of Mumbai-based education
loans provider HDFC Credila by Baring Asia and ChrysCapital for $1.1 Billion
and Canadian investment firm Brookfield’s $1 Billion investment in energy
platform Avaada Ventures were the other top PE-VC deals of Q2'23. These were followed by a $630 million investment in Cube Highways Trust and a $450
million investment in travel and logistics SaaS company IBS Software.
By Industry
IT & ITeS companies accounted for $2.2 Billion of the
total investment pie in Q2'23, lower by 70% when compared with Q2'22
(which saw $7.3 Billion being invested). Tech industry investments were led by the $450 million
investment in IBS Software by Apax Partners and the $250 million raised by
mobile app building platform Builder.ai (from M12, Qatar Investment
Authority, Iconiq Capital, Jungle Ventures, and Insight Venture Partners). Following that, the B2B contract manufacturing marketplace Zetwerk and the construction materials marketplace Infra.Market each raised $150 million.
The Healthcare industry attracted about $2.1 Billion in Q2'23 - a
123% spike compared to the $957 million in Q2'22. The $2 Billion investment in Manipal Hospitals topped the Healthcare list, followed by Somerset Indus Capital Partners's $18 million investment in Emil Pharma.
The Energy industry saw $1.9 Billion worth of investments in Q2'23,
up by 28% compared to the $1.5 Billion invested in Q2'22. Top deals
include Brookfield’s two investments in renewable energy companies: $1 Billion in Avaada Ventures and the $360 million
buyout of Clean Max Enviro Energy Solutions.
"Clearly, Big Ticket Private Equity investors have far more confidence in investing behind basic sectors like Healthcare, Infrastructure, Manufacturing and Financial Services at this point," noted Arun Natarajan, Founder, Venture Intelligence. "From the perspective of Internet & Mobile companies, the new investments in Unicorns like Infra.Market and Lenskart and also the significant build of "Dry Powder" (un-invested capital) with India-dedicated VC firms, provides scope for optimism that the funding winter will begin to thaw in the second half of the year.," he added.
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 Q2'23 in the next few days.)