Private equity and venture capital (PE/VC) funds invested $ 21 billion in Indian companies and startups in the first six months of 2023, according to a research note by Bain & Company shared exclusively with ET. This is on par with the deal value recorded in the first half of 2019.

The report said that the trend lines pointed to a “sharp reset for the PE/VC landscape,” which has been battling a so-called “funding winter” as risk capital inflow to India had dried up from the latter half of 2022.

According to the report, the PE/VC investment activity in India is expected to remain resilient in the second half of 2023, with deal value likely to exceed $30 billion. However, the report also cautioned that the pace of dealmaking could moderate in the second half of the year, as investors become more selective.

The report also highlighted the growing interest of global PE/VC investors in India. In the first six months of 2023, global PE/VC funds accounted for 40% of the total deal value in India, up from 30% in the same period last year.

The report attributed the growing interest of global PE/VC investors in India to a number of factors, including the country’s strong economic growth potential, the large and growing domestic market, and the increasing sophistication of the Indian startup ecosystem.

The report also noted that the PE/VC investment landscape in India is becoming more diversified, with a growing number of deals being done in sectors such as healthcare, technology, and consumer goods.

The report said that the PE/VC investment landscape in India is expected to remain vibrant in the coming years, supported by the country’s strong economic growth potential and the increasing sophistication of the Indian startup ecosystem.

Here are some of the key takeaways from the news:

  • Private equity and venture capital funds invested $ 21 billion in Indian companies and startups in the first six months of 2023.
  • This is on par with the deal value recorded in the first half of 2019.
  • The trend lines pointed to a “sharp reset for the PE/VC landscape,” which has been battling a so-called “funding winter” as risk capital inflow to India had dried up from the latter half of 2022.
  • The PE/VC investment activity in India is expected to remain resilient in the second half of 2023, with deal value likely to exceed $30 billion.
  • However, the pace of dealmaking could moderate in the second half of the year, as investors become more selective.
  • Global PE/VC funds accounted for 40% of the total deal value in India in the first six months of 2023, up from 30% in the same period last year.
  • The PE/VC investment landscape in India is becoming more diversified, with a growing number of deals being done in sectors such as healthcare, technology, and consumer goods.
  • The PE/VC investment landscape in India is expected to remain vibrant in the coming years, supported by the country’s strong economic growth potential and the increasing sophistication of the Indian startup ecosystem.

Here are some of the implications of the news:

  • The investment in the Indian PE/VC sector is a sign of the confidence that investors have in the Indian economy.
  • The investment is also a sign of the growing maturity of the Indian startup ecosystem.
  • The investment is likely to boost the growth of the Indian economy and to create jobs.
  • The investment is also likely to attract other investors to the Indian PE/VC sector.