A total of 70 India-focused private equity and venture capital funds closed in 2022, raising an aggregate $8.5bn in the process, is the highest ever annual fundraising value for the industry, according to a new report from Preqin.
The Private Equity and Venture Capital in India 2023: Preqin Territory Guide report, produced in association with the Indian Venture and Alternate Capital Association (IVCA), reveals that despite the record fundraising, there was a sharp decline in activity last year, primarily due to growing global macroeconomic challenges. As a result, aggregate deal value saw a sharp drop of 42% from a record $60bn in 2021 to $35bn in 2022.
Defensive sectors such as healthcare and energy and utilities have shown growth in India, attracting investment attention away from traditionally popular sectors like IT, which experienced a sharp decline, plummeting from an aggregate value of $26.3bn in 2021 to $8.3bn in 2022. This slowdown has continued in 2023, with IT deal value shrinking to $1.7bn in the first seven months of the year.
In September 2023, a report from investment data company Preqin was released. It said that about 70 India-focused private equity and venture capital funds closed in 2022. This raised an aggregate of $8.5 billion in the process.
