PE investments into domestic cos fall to $6.72 bn in June quarter: Report

Private equity investments into domestic companies fell 17 per cent to USD 6.72 billion on an annual basis in the June quarter, according to a report.

During the same period, the number of Private Equity (PE) deals also declined 15 per cent to 344 compared to the year-ago period.

In the year-ago period, the deal value stood at USD 8.13 billion.

The deal value declined by 25.1 per cent in the three months ended June compared to the 2022 March quarter when it stood at USD 8.97 billion, deal tracker Refinitiv, a London Stock Exchange group entity, said on Monday.

The steep quarterly decline in the deal value was due to a 40 per cent fall in money flows to the startups space.

Refinitiv said that PE investments declined 17.3 per cent to USD 6.72 billion in the June quarter from the year-ago period when the country attracted USD 8.13 billion. This was after a strong start in the first quarter.

However, the total PE investments in the first six months of the year stood at USD 15.7 billion, which is a growth of 25.9 per cent growth compared to the year-ago period.

It also said that technology space continued to receive majority of investments, accounting for 73.2 per cent or USD 6.53 billion so far in the first six months of this year.

There is also substantial capital waiting to be deployed as India-based funds raised USD 7 billion so far this year, which is more than double of the year-ago period, Refinitiv said.

In terms of industries, Internet and computer software along with transportation saw the maximum investments. Tech space got 26 per cent more money from 257 deals. IT was followed by computer software sector which saw inflows rising by 14.3 per cent, transportation (144.3 per cent), financials (5.1 per cent) and consumer related sectors (84.5 per cent).

However, medical/health segment received 38.6 per cent less funds while semiconductors space saw a 4.8 per cent decline. The PE inflows into the biotechnology sector dropped 84.7 per cent.

The top 10 PE deals in the first half of this year include Verse Innovation (USD 827.7 million), Think & Learn (USD 800 million), Bundl Technologies (USD 700 million) and Tata Motors Electric Mobility (USD 494.7 million).

Others are NTEX Transportation Services (USD 330 million), Delhivery (USD 304 million), Busybees Logistics Solutions (USD 300 million), EQX Analytics (USD 270 million), Mohalla Tech (USD 255 million) and Acko Technology & Services (USD 255 million).