TLDR:
- Indian PE-VC investment decreased by 35% from $62 billion in 2022 to $39 billion in 2023.
- Bain & Co predicts that PE-VC dealmaking in India will remain subdued in 2024 as global macroeconomic conditions stabilize.
The article discusses how Indian private equity and venture capital (PE-VC) investments saw a significant decline of around 35% from $62 billion in 2022 to nearly $39 billion in 2023, marking a return to pre-COVID levels. Bain & Co, a global management consulting firm, anticipates that PE-VC dealmaking in India is likely to remain tempered in 2024 amidst the stabilization of global macroeconomic conditions.
This decline in PE-VC investments can be attributed to various factors such as market uncertainties, changing investor sentiment, and the impact of global economic trends. While the COVID-19 pandemic had initially disrupted investment activities, leading to a decrease in deal volumes and values, the recovery post-pandemic has been gradual but steady.
Bain & Co’s analysis suggests that investors may adopt a cautious approach in 2024, focusing on sectors with resilience and potential for growth. Sectors like technology, healthcare, and consumer goods are expected to attract significant investments, while traditional industries may face challenges in fundraising.
In conclusion, while the PE-VC landscape in India may experience a subdued phase in 2024, the overall outlook remains positive as global macroeconomic conditions stabilize, paving the way for strategic investments and opportunities in emerging sectors.
