The private equity and venture capital landscape in India experienced a significant decline in investments in 2023 compared to the previous year, according to a joint report by Bain & Company and IVCA.
Overall, private equity and venture capital investments in India dropped by about 35%, totaling around USD 39 billion in 2023, down from USD 62 billion in 2022. Specifically, private equity investments saw an 18% decrease to USD 29.6 billion from the peak value of USD 36 billion in 2022.
The decline in venture capital investments was even sharper, with total investments amounting to USD 9.6 billion in 2023, compared to USD 25.7 billion in 2022.
Despite the decline in investments, 2023 was highlighted as a significant year for Indian exits, with exit values increasing by 15% to reach USD 29 billion. This was attributed to the sale of shares in 340 entities.
The report noted India's private equity landscape's resilience amid global economic uncertainties, with the country emerging as a key player in Asia-Pacific PE-VC activity. The influx of capital from both domestic and global funds indicates a promising future for the Indian private equity and venture capital market.
