Investments by non-public fairness and enterprise capital funds (PE/VC) declined by 22 per cent in March to USD 4.6 billion unfold throughout 107 offers, a report stated on Wednesday.
The deal exercise confirmed a rise of 54 per cent by worth at USD 15.5 billion throughout 360 offers, largely on the again of heightened exercise within the startup area, the month-to-month report by IVCA and EY stated.
“While India’s position as an attractive destination for PE/VC investments is expected to remain strong in 2022 given its high growth and macroeconomic and policy stability, the continuing geopolitical tensions, rising inflation, quantitative tightening by the US FED and inversion in the US yield curve are potential downside risks, making investors circumspect,” Partner at EY Vivek Soni stated.
Exit exercise confirmed a 16 per cent decline at USD 4 billion for the quarter, making it the bottom within the final 5 quarters within the absence of huge strategic and secondary offers.
“A drought in PE-backed IPOs has further dampened the value of PE/VC exits. Nonetheless, the past three months have recorded a rising trend in the number of exits despite the absence of PE-backed IPOs,” Soni added.
On the funding entrance, there have been 45 giant offers aggregating to USD 10.1 billion within the quarter ended March, in comparison with 30 giant offers aggregating to USD 6.7 billion within the year-ago interval, and 53 giant offers value USD 19.5 billion within the previous December quarter, the report stated.
If one had been to exclude investments in actual property and infrastructure sectors, the full bets had been recorded at USD 13.9 billion within the March quarter, which is 77 per cent greater than the USD 7.8 billion recorded within the year-ago interval, and 36 per cent decrease than the worth recorded within the December quarter at USD 21.6 billion, it added.
The report additional stated that the start-up investments had been the best within the March quarter with USD 7.7 billion invested throughout 255 offers as in comparison with USD 2.8 billion throughout 175 offers within the year-ago interval and USD 9.6 billion throughout 233 offers within the previous December quarter.
From a sectoral perspective, 5 sectors recorded greater than USD 1 billion in investments within the quarter, amongst which, monetary companies obtained the best worth of investments at USD 3.2 billion throughout 71 offers, adopted by the e-commerce sector which recorded USD 2.7 billion throughout 47 offers, and the know-how sector with USD 2.6 billion invested throughout 59 offers.
The March quarter noticed USD 4.6 billion in fundraising in comparison with USD 1.7 billion within the year-ago interval and USD 1.6 billion within the previous December quarter, the report famous.