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TLDR:
– India’s private equity landscape stabilizes in the first half of 2024 with investments holding steady at $23-$24 billion.
– Key sectors for investment include IT/ITeS, healthcare, and consumer technology.
Investment momentum in India rebounded in the first half of 2024 following a period of correction and recalibration after record-breaking investments in 2022. The PE and VC markets showed signs of stabilization, with investments remaining steady at around $23-$24 billion. The IT/ITeS sector saw significant growth with investments reaching three times the total for 2023, driven by large buyout deals. Consumer technology also experienced growth, with B2C commerce being a dominant subsector attracting significant investments. The resurgence of VC and growth equity investments contributed to sector growth, showing a reversal of previous tapering trends. Healthcare remained a material sector despite a slight decline in overall deal value.
VC and growth equity investments in India grew by 25% year over year, signalling a rebound in deal volumes. PE deal value saw a modest decline of 10% year over year in the first half of 2024, driven by a drop in deal volumes. Global funds played a crucial role in driving PE investments, with their share of deal value surging. Domestic funds also remained active in the market with successful fund-raising efforts. Exit activity in the first half of 2024 reached a six-year high, with notable exits in healthcare and BFSI sectors. Overall, the Indian PE-VC landscape displayed signs of recovery and stabilization, setting the stage for potential growth in the second half of 2024.
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