Press Release:
Private Equity - Venture Capital (PE-VC) firms invested over $6.2 Billion (across 205 deals) in Indian companies during the first three months of 2024, 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 8% fall over the $6.7 Billion (across 242 deals) invested in the same period during 2023 and also down by 6% when compared to the immediate previous quarter (which witnessed $6.6 Billion being invested across 200 deals). Deal volumes in Q1'24 also declined 15% compared to Q1'23 and were up by 3% compared to the immediate previous quarter.
Q1’24 witnessed 8 mega deals ($100 M+ rounds) worth $3.5 Billion, compared to 17 such investments (worth $3.6 Billion) in Q1’23 and 15 such deals (worth $4.1 Billion) in the immediate previous quarter.
The largest investment in Q1’24 was the $2 Billion acquisition of the Indian business of telecom Infrastructure provider American Tower Corporation (ATC) by Brookfield. Other top investments during the period included GIC’s $500 million investment in power transmission firm Sterlite Power Transmission and Multiples PE & Advent International’s $233 million investment in Svatantra Microfin. This was followed by NIIF’s majority stake acquisition in wireless communications company iBus for $200 million.
By Industry
Led by $2 Billion acquisition of ATC-Brookfield deal, Telecom emerged as the top industry attracting PE-VC investments in Q1’24
The traditional topper IT & ITeS industry came in next, attracting $1.6 Billion across 114 deals in Q1’24 - a 40% decline from $2.7 billion across 145 deals in Q1’23. Deals in the industry were led by the $200 million majority stake acquisition by NIIF in iBus (which operates in the intersection of Tech and Telecom offering in-building mobile network services). This was followed by the $150 million investment in Indo-US cross border, Enterprise AI software firm Kore.ai and $103 million fundraise by audio-content platform Pocket FM.
The Energy industry attracted about $585 million across 7 deals during Q1’24 - a 55% decrease from the $1.3 Billion invested across 12 deals in Q1'23. Investments in the industry were led by GIC’s $500 million investment in power transmission firm Sterlite Power Transmission and the $35 million fundraise of EV batteries International Battery Company from RTP Global, Beenext and Shastra VC.
"Despite the fall in the number of mega deals, new bets by both global investors and homegrown PE firms during Q1'24 points to a more 'normal' funding environment. The diversified nature of the sectors that received funding was also an encouraging feature," remarked Arun Natarajan, Founder, Venture Intelligence. "From a comparative numbers perspective, April-June 20223 was a particularly big quarter - on the back of large buyouts at Manipal Hospitals and HDFC Credila. It would be a tall ask to outdo that number in the quarter ahead, " he pointed out.
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 2024 in the next few days.)