‘Most of the traditionally favourite sectors for PE/VC investments saw a sharp fall in investments, except for infrastructure and healthcare’
‘Most of the traditionally favourite sectors for PE/VC investments saw a sharp fall in investments, except for infrastructure and healthcare’
The monthly run-rate of private equity and venture capital investment inflow to the country has declined from $5 billion to $2 billion sequentially over the past six months, said IVCA-EY Report.
“The country maintained a monthly average run-rate of $5 billion PE/VC inflow in the initial months of 2022, but they declined sequentially over the past six months, barely recording $2 billion in each of the past two months.,” said Vivek Soni, Partner and National Leader, Private Equity Services, EY.
Private equity and venture capital investments and exits have also annually declined by 69% and 48%, respectively, in the third quarter of calendar 2022, as per the report.
July-August-September quarter recorded $8.3 billion in PE investments across 238 deals, a 69% year-on-year decline while PE/VC exits across 61 deals shrunk by 48% YoY to $4.4 billion, it reported.
Mr. Soni said, “3Q22 recorded lower invests at 69% and 55% YoY and QoQ, respectively.’‘
According to the IVCA-EY Report, most of the traditionally favourite sectors for PE/VC investments saw a sharp fall in investments, except for infrastructure and healthcare. The infrastructure sector received maximum PE/VC investments in 3Q22 at $2.6 billion across 12 deals, a 63% increase y-o-y. Technology and e-commerce recorded 88% and 96% decline in investments, respectively. Also, investments in the financial services too declined by 44$ to $2.1 billion in the quarter compared to the corresponding period a year ago.
