PE/VC exits surge 36% to $24.8 bn in 2023 amid declining investments | Start Ups – Business Standard
Private equity and venture capital (PE/VC) exits in India surged by as much as 36 per cent year-on-year (Y-o-Y) to $24.8 billion in 2023, up from $18.3 billion the previous year, according to a recent report.
Open market exits, comprising 52 per cent of the total exits, reached a record high of $12.8 billion, while buoyant capital markets enabled the second-best year for PE-backed initial public offerings (IPOs). Public listings numbered 30 in 2023, up from 18 in 2022, as per the report by EY-IVCA.
This came even as PE/VC investments in the country fell 11 per cent YoY from a total of $56.1 billion across 1,273 deals in 2022 to $49.8 billion across 853 deals in 2023, primarily due to a 33 per cent drop in deal volume. Moreover, investments among Indian startups fell 50 per cent during the year.
“Despite witnessing a decline in overall PE/VC investments, certain sectors, like real assets-backed infrastructure and real estate sectors, experienced substantial growth. Similarly, while the e-commerce sector faced a funding winter, other sectors such as healthcare and financial services saw significant activity,” said Vivek Soni, Partner and National Leader for Private Equity Services, EY India.
The infrastructure sector emerged as the leader, attracting $11.6 billion in investments in 2023, while traditional favorites such as financial services and technology witnessed a decline. The healthcare sector, however, recorded a substantial high of $5 billion, the report said.
“The industry is anticipating a strategic shift in investment approaches, a rise in sectoral focus, and a resurgence in alternate capital investments post-elections,” said Rajat Tandon, President, IVCA.
First Published: Feb 28 2024 | 5:52 PM IST