TLDR:
- Private equity investment deals slowed down in 2023-24, with funding from venture capital firms decreasing.
- Startup funding in India saw a decline of 17% in 2023-24 compared to the previous year.
In 2023-24, private investment deals in India experienced a slowdown, with funding from investors, especially venture capital firms, decreasing since the peak seen in 2021-22. A report by Wealth 360 One highlighted that the number of deals and their total value had decreased by one-third compared to the previous financial year. Despite this correction, there was optimism among bankers that the slowdown would stabilize in the near future.
The report also noted a decline in startup funding in India, with fewer deals being finalized daily. The bigger deals, over USD 25 million, which usually signal growth for startups, also decreased. Late-stage venture capital investments took a hit, with startups raising nearly USD 8 billion from investors, marking a 50% decrease from the previous year.
Consumer-focused sectors and technology faced caution from investors, with a drop in deals and total funding. However, sectors like industrials and materials remained steady, while financial services and healthcare showed more promising results. In the listed space, public market deals and pre-IPO deals nearly reached previous highs, indicating resilience in those segments.
Overall, the private equity investment landscape in India in 2023-24 showcased a slowdown in dealmaking, particularly in the startup industry. Despite the challenges, there was hope for stabilization in the future, with some sectors showing more promising growth potential than others.
