Private equity investment in India fell to a six-year low in the first quarter of 2024, with total investments falling 44% year-on-year to $1.8 billion, according to data analyzed by LSEG Deals Intelligence. The economic downturn marks the weakest start to the year in value terms since 2018.
Additionally, private equity fundraising activity in India reached S$1.5 billion in Q1 2024, down 46% year-on-year. However, it is worth noting that it recorded a three-fold increase compared to the fourth quarter of 2023.
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Private equity investments in the first quarter of 2024 amounted to $1.778 billion, a significant 25.0% decrease from the fourth quarter of 2023 ($2.37 billion). The total number of companies that invested in India in Q1 2024 increased by 10.6% to 366 companies compared to 331 companies in Q4 2023 in the previous quarter, compared to 373 companies in Q1 2023. Compared to the previous year, it decreased by 1.9%. As a result, private equity investments decreased in the first quarter of 2024. This has increased to 43.6% compared to a year ago (Q1 2023).
Where are PE investors putting their money?
In terms of industry-specific investments, Internet-specific services and financial services saw the largest investments in Q1 2024, capturing 48% of the market share. Total investment in Internet specific sectors decreased by 57.2%, and the number of transactions decreased from 117 in the first quarter of 2023 to 87. Computer software (-70.5% compared to the previous year) and transportation industry (-53.4% ​​compared to the previous year) decreased. However, industries corresponding to consumer-related (222.1%) and business services saw an increase in investment volumes compared to Q1 2023. (743.8.%), total investment increased.
Fundraising activities in India: Fundraising activities for funds located in India increased by 45.0% from USD 465 million in Q1 2023 to USD 1,481.04 million in Q1 2024.
