The Indian private equity and venture capital investments declined by about 35% to around $39 billion in 2023 from $62 billion in 2022, according to a joint report by Bain & Company and IVCA released on Thursday. The private equity investments in India dropped by 18% to $29.6 billion from a peak value of $36 billion in 2022.
The drop in VC investments was much sharper, with total investments at $9.6 billion in 2023 versus $25.7 billion in 2022.
"Mirroring the global trend, Indian private equity and venture capital (PE-VC) investment softened by about 35% from approximately $62 billion in 2022 to around $39 billion in 2023, returning to pre-Covid-19 activity levels," the report said.
The report saw 2023 as a marquee year for Indian exits with exit values soaring by 15% to $29 billion with sale of shares in 340 entities.
"In a year marked by global economic uncertainties, India's private equity landscape demonstrated remarkable resilience, with exit values surging by approximately 15% to reach $29 billion in 2023."
"With India emerging as a key player in Asia-Pacific PE-VC activity, the influx of capital from both domestic and global funds signifies a promising future," Indian Venture and Alternate Capital Association President Rajat Tandon said.
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