Private equities inflows and Venture capital funds from domestic companies slowed down to $27.9 billion

As per the data from Venture Intelligence and the Indian Private Equity and Venture Capitalist Association, Private equity and Venture capital investments in Indian companies declined about 40 percent to $27.9 billion in 2023, as compared to $47.62 billion in 2022.

Private equities inflows and Venture capital funds from domestic companies slowed down to $27.9 billion

Investments done from private equity and venture capital funds into domestic companies declined approximately 40 percent to USD 27.9 billion, while the outflow increased marginally to $19.34 billion from $18.45 billion in 2022. Further, the numbers collated by Venture Intelligence tracks private capital and debt flows, and IVCA [ industry body], investments by private equity and venture capital funds as of December 20, 2023, plunged to a low of USD 27.9 billion across 697 transactions, as against USD 47.62 billion inflows in 2022 across 1,364 deals.

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According to data, the present year has witnessed more money being pulled out from the country by private equity players with overall exits touching USD 19.34 billion from 248 companies as against 233 exists worth USD 18.45 billion in 2022.

The most number of investments were led by sectors such as healthcare and life sciences which saw a 30.2 percent higher inflow compared to last year[ 14.5 percent], retail [98.8] and advertising & marketing which received inflows nearly double [199.8 percent ] than last year.

On the contrary, few sectors saw low funding, IT& ITES sector receiving 64.5 percent less than previous year, while BFSI [ Banking, Financial, Services and Insurance] sector got 47.6 percent less this year, also funding in manufacturing went down by 43 percent, in engineering and construction it fell by 64 percent.

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Some entities like shipping & logistics witnessed a fall of 60.6 percent, inflow in education lowered by 78.4 percent. It declined by 48.5 percent in FMCG and fell 80.9 percent in agri business, whereas in food & beverages sector got decreased 70.4 percent .

The top five VCs exits through strategic/secondary sales were from Flipkart[ USD 1.78 billion], Lenskart [USD 410 million], DMI Finance [USD 167 million], Mamaearth [ USD133 million vial IPO] and Veritas Finance [ USD 97 million].

Similarly, the year also saw VCs withdrawing USD 3.5 billion through 79 exits in 2023 as against the outflow of USD 3.1 billion from 113 companies a year ago.

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