Private Equity and Venture Capital Withdrawals Surge by 36% as Investments Decline by 11%

Enfluencer Media

The outflow of private equity and venture capital (PE/VC) in the country has increased by 36 percent compared to last year to $ 24.8 billion by 2023, from $ 18.3 billion last year. This information has been given in a recent report.

Open market withdrawals accounted for 52 percent of total withdrawals, reaching a record $12.8 billion. 2023 was the second best year for PE-backed initial public offerings (IPOs) thanks to bullish capital markets. According to the EY-IVCA report, the number of companies to be listed on the stock market will increase to 30 in the year 2023, whereas in the year 2022 this number was 18.

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This happened when PE/VC investment in the country declined by 11 percent compared to last year. During the year 2022, a total of $ 56.1 billion was invested in 1,273 deals, while during the year 2023, only $ 49.8 billion was invested in 853 deals. This was mainly due to a 33 percent decline in deal volume. Apart from this, investment in Indian startup companies also declined by 50 percent during the year.

Vivek Soni, partner and national leader, private equity services, EY India, said that despite a decline in overall PE/VC investments, some sectors such as real asset-backed infrastructure and real estate sectors have seen significant growth. Similarly, while the e-commerce sector faced a decline in funding, other sectors such as healthcare and financial services saw significant activity.

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