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%
