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The value of investments by Private Equity - Venture Capital (PE-VC) firms in India fell by 38 per cent to less than $30 Billion in 2023. PE-VC firms invested $29.7 Billion (across 756 deals) in Indian companies in 2023, compared to $47.6 Billion (across 1,362 deals) in the previous year, as per Venture Intelligence.

2023 witnessed 67 mega deals ($100 M+ rounds) worth $21.2 Billion, compared to 112 such investments worth $31.8 Billion in 2022.

The $2.4 Billion investment in Manipal Hospitals by Temasek (which gained majority control) and TPG Capital was the largest PE-VC investment in 2023. This was followed by the $1.35 Billion buyout of education loans focused HDFC Credila by Baring Asia and ChrysCapital and the $1 Billion investment by Qatar Investment Authority (QIA) in Reliance Retail.

2023 saw just two Unicorn companies (VC-funded startups valued at $1 Billion or more) being created, compared to 21 in 2022 (and a record 44 in 2021). Quick commerce startup Zepto (which attracted $ 231 million led by foreign investors in August 2023), was joined on the unicorn list towards the year end by consumer & small business loans firm Incred Finance (which attracted $60 million from domestic Family Offices and HNIs).

“While large ticket PE investors focused their attention towards sectors like Healthcare, Financial Services and Infrastructure, 2023 saw the slowdown in Growth- and Late- Stage investing trickle into the Venture Capital segment as well,” noted Arun Natarajan, Founder of Venture Intelligence.

“Towards the year end, on the back of strong public markets, private markets received a dose of optimism, which also translated into a few large growth stage tech investments going through,” he added.