PE Tech Report


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Steep fall in private equity flows to India

Internet and computer software companies drew the largest share of private equity capital into India in Q1– but its share fell from 75% to 58% year-on-year as overall PE investments slumped, according to data published by Refinitiv.

Private equity inflows plunged 75.4% to $2.2 billion in the first quarter, making it the sixth consecutive quarter of decline, amid global macroeconomic and geopolitical headwinds

The $2.2 billion of inflows represents the lowest private equity investment in India since 2018, when it stood at $1.7 billion. On a sequential basis, the Q1 decline was 31.9% year-on-year when it was $3.2 billion, and 75.4% annualised from $8.83 billion. In terms of volume,, the total number of deals dropped almost 20% to 282, down from from 352 in Q4 of 2022, and by 30.9% compared to 408 deals in Q1 last year.

Private equity fundraising activity also dropped 41% in Q1 this year compared to the first quarter of 2022, and saw a 45% decline from the previous quarter.

Computer software and Internet-specific companies continue to attract maximum investor interest with $392.3 million, down 85.2% from 88 deals, and $870.9 million in the reporting period, down 78.3%.

Inflows into the consumer-related sector fell 83.9% and transportation plunged 72.3%. However, industries catering to the energy and industrial sectors rose 361%, and so did medical and health, which jumped 310.5%

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