TLDR:
Private Equity – Venture Capital (PE-VC) investments in India dropped by 8% in Q1 2024 compared to the year-ago period. Q1 2024 investments were down by 6% from the previous quarter. There were 8 mega deals with over $100 million rounds worth $3.5 billion in Q1 2024.
- PE-VC investments declined by 8% in Q1 2024 from the year-ago period.
- Q1 2024 investments were down by 6% from the previous quarter.
Private Equity – Venture Capital (PE-VC) investments in India dropped by 8% in the first quarter of 2024 compared to the year-ago period, according to data from Venture Intelligence. Q1 2024 investments stood at more than $6.2 billion across 205 deals in Indian companies, down from $6.7 billion across 242 deals in Q1 2023. Additionally, Q1 2024 investments were down by 6% from $6.6 billion invested across 200 deals in the immediate previous quarter. Deal volumes in Q1 2024 also dropped by 15% compared to Q1 2023 and were down by 2% compared to the immediate previous quarter.
Q1 2024 reported 8 mega deals with over $100 million rounds worth $3.5 billion, compared to 17 such investments worth $3.6 billion in Q1 2023 and 15 such deals worth $4.1 billion in Q4 2023. The largest deal of Q1 2024 was the $2 billion acquisition of the Indian business of telecom Infrastructure provider American Tower Corporation (ATC) by Brookfield.
Startup funding during the first quarter of 2024 also saw a significant drop, with a 51% decline to $1.6 billion across 222 rounds from $3.2 billion invested in startups in Q1 2023. Late-stage funding in Q1 recorded the sharpest fall of over 46% to $0.67 billion from $1.25 billion raised in Q4 2023.
Overall, despite the decline in mega deals, new investments by global investors and homegrown PE firms during Q1 2024 suggest a more ‘normal’ funding environment. The diversified nature of the sectors that received funding was also seen as an encouraging feature by industry experts.
