PE/VC investments drop by 35% in April at $4.4 bn

Investments by private equity and venture capital funds declined by 35 per cent to USD 4.4 billion in April compared with USD 6.8 billion in the year-ago period, a report said on Thursday. The number of deals in April stood at 98, which was 56 per cent higher than the year-ago period, the report by EY, a consultancy firm, and industry lobby grouping IVCA said.

“PE/VC investors continue to remain cautious due to global uncertainties, geopolitical tensions, and the ongoing Indian general elections,” the consultancy firm’s partner Vivek Soni said, adding that the activity will be subdued till the outcome of the election is decided.

In April 2024, there were nine large deals of over USD 100 million, worth USD 3.1 billion, which is a 48 per cent decrease compared to the USD 6 billion across 11 deals in April 2023, the report said.

Buyouts more than doubled at USD 2.1 billion invested across five deals, compared to USD 783 million in April 2023 in four deals, the report said, adding that growth investments were the second largest at USD 884 million, which was a 76 per cent decline.

There was an 11 per cent growth in the bets on startups at USD 756 million across 54 deals, it said.

From a sector point of view, financial services emerged at the top in April 2024 at USD 1.8 billion in PE/VC investments across 17 deals, followed by real estate (USD 849 million), healthcare (USD 489 million), and E-Commerce (USD 341 million). There were 21 exits worth USD 907 million in April, which was much lower than the USD 1.6 billion across 15 deals in the year-ago period, the report said, adding that Bain Capital‘s USD 428 million sale in Axis Bank was the highest.