TLDR:
- Private equity and venture capital investments in Mumbai declined by 1% to USD 13.5 billion in the March 2024 quarter.
- The infrastructure sector led with USD 6.5 billion investments.
According to a report by consultancy firm EY and industry lobby grouping IVCA, investments by private equity and venture capital funds decreased by 1% year-on-year in the March 2024 quarter. Despite this decline, the total amount invested was 41% higher compared to the previous December quarter. The number of deals also increased by 33% in January-March 2024 compared to the year-ago period.
The infrastructure sector received the maximum PE/VC investments in the quarter at USD 6.5 billion across 23 deals, with a significant increase of 138% from the previous year. Pure play PE/VC investments, excluding real estate and infrastructure, were 5% higher at USD 6 billion and accounted for 45% of all investments in the quarter. Buyouts were the highest deal segment at USD 4.5 billion across 10 deals.
Additionally, there were 80 exits in the quarter worth USD 5.1 billion, showing a 35% increase from the previous year. PE and VC funds raised USD 2.8 billion for investing during the quarter, down 27% compared to the year-ago period. The report predicts that the markets and PE/VC investment activity will remain range-bound until there is clarity on election results and a reduction in geopolitical conflicts.
