41 decline in private equity and venture capital investment in India – StartUp News

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Investment in private equity and venture capital (PE/VC) in India has declined by about 41 per cent to $27.89 billion in 697 deals so far in 2023. This information has been received in a report released on Wednesday.

However, India has performed better in terms of exits, the report by Venture Intelligence and Indian Venture Capital Association (IVCA) said.

PE withdrawals from 248 companies during the year stood at $19.34 billion, which is slightly higher than the 233 withdrawals of $18.48 billion in 2022. Meanwhile, VC investment has increased from $3.09 billion in 113 deals by 2022 to $3.46 billion in 79 deals so far this year.

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The report also said that the decline in the number of deals is due to investors taking informed decisions and taking steps like impact investing.

The report said, ‘The low number of deals shows that investors are taking informed decisions and are looking at long-term benefits and continuity opportunities.’

The decline in investment comes at a time when investment in Indian startup companies is declining and they are struggling with the so-called funding winter.

During this period, instead of investing, investors strengthen their wallets. After huge capital inflow, startup companies had raised a huge capital of $ 42 billion in the year 2021. The market has since corrected this and as a result investment has declined.

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First Published – December 27, 2023 | 10:25 PM IST

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