Private equity investments in India recorded a 38.9 per cent increase in January-September 2024 to touch $ 10.9 billion ($ 7.9 billion), latest data from LSEG Deals Intelligence showed.

In the latest July-September 2024 quarter, the private equity investments came in at $2.77 billion, up 49 pe rcent over $ 1.6 billion in same quarter last fiscal. However the latest quarterly reading was lower than the investment value of $3.9 billion in the April-June 2024 quarter.

Elaine Tan, Senior Manager, LSEG Deals Intelligence, said “India continues to be one of the top markets in Asia Pacific for financial sponsor activity, accounting for at least 28 percent of the region’s total equity invested during this period, up from a 16 percent market share in the same period last year.”

India offers diverse opportunities across various sectors, from healthcare and technology to consumer services, with growing consumption, digital transformation, and infrastructure development services serving as key drivers fueling investor interest”.

The convergence of these factors, along with a resilient IPO market despite global downturns and a dynamic startup ecosystem, positions India as a key player in the global private equity landscape for the remainder of the year, Tan added.

“Additionally, the anticipated global trend of monetary easing could further boost private equity activity as financial sponsors find cheaper funding and deploy dry powder more effectively”, Tan said.

Meanwhile, the number of PE deals in the first nine months of this calendar year declined 2.5 percent to 960 from 980 in same period last year, LSEG Deals Intelligence data showed.

The number of deals in the latest September 2024 quarter was 308, up 10.8 per cent from 278 in same quarter last year. 

Private equity and venture capital firms continue to focus on India given its strong economic growth, thriving domestic equity capital markets, and dynamic start-up ecosystem.

Sector Specific PE flows

Internet-specific, communication, computer software and financial services attracted the maximum PE interest, with $ 3.29 billion, $ 2.18 billion, $ 1.54 billion and $ 1.11 billion. These sectors accounted for over 70 percent market share of the total PE investments into India in January-September 2024. 

In the same nine months last year, the top four attractive sectors for PE investments were internet-specific, computer software, transportation and industrial/energy.

Fundraising 

The fundraising activity for the private equity funds located in India saw a 52 per cent decline to $ 2.8 billion ($ 5.9 billion)

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