Private equity (PE) investments into India declined 57 per cent year-on-year in August 2023 to $651 million ($ 1,496 million), showed latest data from Refinitiv, an LSEG business.
The latest monthly PE investments performance was also substantially lower than the level of $3,056 million recorded in July 2023.
Even for the period from January to August 2023, the quantum of PE investments into India declined by 55 per cent at $9.2 billion ($ 20.3 billion in Jan-Aug 2022), the latest data revealed.
In the entire calendar year 2022, the total PE investments into India stood at $27,586 million, lower than $44,275 million in previous year.
The PE investment flows into India this year has been impacted by macroeconomic uncertainty, geopolitical headwinds and tight credit markets.
For the first half of this calendar year (January-June 2023), PE investments in India had declined 61 per cent to $6.11 billion ($15.77 billion).
Private equity (PE) investments into India recorded 37.1 per cent growth in April-June 2023 at $3.53 billion as against investments of $2.58 billion in January-March 2023.
- Also listen: Why the rush for private credit?
PE FUND RAISING
Meanwhile, private equity fund raising activity in India too was down substantially in August 2023 at just $30 million ($508.57 million).
Till end-August this calendar year, the total PE fund raising stood at $5,386 million involving 34 firms and 37 funds, the latest Refinitiv data showed.
It maybe recalled that India-based PE funds raised a record $13.7 billion in 2022.
The total PE fundraising activity in India stood at $5.2 billion during the first half of 2023, down 27 per cent from a year ago.
Despite the challenging environment, there is substantial capital waiting to be deployed, raising over $24 billion from 2021 through August 2023, in alternative growth and strong start-up markets like India and Southeast Asia, experts said.