The number of investment deals have gone up in the second quarter of the calendar year 2024, while the value of the deals declined. The number of deals in the quarter stood at 75 as against 69 deals in the first quarter, showing a growth of 9 per cent.
The aggregate value of the deals in the second quarter, however, fell to $483 million ($678 million), registering a decline of 29 per cent.
“There are early shoots of revival in deal activity across the globe. However, the investors are continuing to exercise caution and are favouring profitable start-ups with strong cash management over the ones opting for aggressive growth strategies,” Raja lahiri, Partner and Technology Industry Leader at Grant Thornton Bharat, has said.
As a result of average value of a deal fell to $6.4 million from $9.8 million. “It (PE investments), however, reported a marginal decline of 3 per cent at $445 million as against $460 million in the first quarter,” research firm Grant Thornton said in its latest report Technology Dealtracker.
Tech start-ups
Early stage investments predominated, with funding ranging from pre-seed to seed stages comprising nearly 43 per cent of the deal volumes. “Despite a surge in start-up funding, there are no new entries into the unicorn club among early to mid-sized companies,” it said.