TLDR:
Key points:
- Indian private equity and venture capital (PE-VC) investment softened to $39 billion in 2023, returning to pre-COVID-19 levels.
- Traditional sectors like manufacturing, healthcare, and energy have gained share, with 75% of investments in 2023 compared to 60% in 2022.
In 2023, Indian private equity and venture capital (PE-VC) investment softened to $39 billion, reflecting global trends and returning to pre-COVID-19 activity levels, as reported by Bain & Company. The report highlighted the resilience and growth in traditional sectors such as manufacturing, healthcare, and energy, which accounted for 75% of investments in 2023 compared to 60% in 2022.
The manufacturing sector in India emerged as an attractive opportunity for investors, with $2 billion in investments showing a 20% CAGR over the last two years. This growth was driven by factors such as supply-chain diversification, government incentives, and the availability of scale assets in the market.
Bain & Company’s annual India Private Equity Report 2024, prepared in collaboration with the Indian Venture and Alternate Capital Association (IVCA), also highlighted the increasing focus on electric vehicles (EVs) in India. With EV penetration expected to reach 40% by 2030, OEMs drove over 70% of deal value and made large investments (exceeding $100 million) across various vehicle segments such as Ola Electric, Ather Energy, Mahindra EV, and TI Clean Mobility.
