PE-VC Investments in India Dip to USD 39 Bn in 2023

Mumbai, May 28 (KNN) Private equity and venture capital investments in India cooled off to USD 39 billion in 2023, reverting to pre-pandemic levels, according to a report by Bain & Company released on Monday.

The report, prepared in collaboration with the Indian Venture and Alternate Capital Association (IVCA), highlighted a shift in investor focus towards traditional sectors like manufacturing, healthcare, and energy, which accounted for nearly 75 per cent of the total investments in 2023, up from 60 per cent in the previous year.

The manufacturing sector emerged as an attractive destination, drawing investments worth USD 2 billion with a compound annual growth rate of 20 per cent over the past two years (2021–23).

This surge was driven by factors such as supply chain diversification, government incentives, and the availability of numerous scale assets.

The report also underscored the growing momentum in the electric vehicle (EV) segment, which is expected to reach 40 per cent penetration in India by 2030.

Over 70 per cent of deal value and large investments (exceeding USD 100 million) were concentrated in OEMs across various vehicle segments, such as Ola Electric, Ather Energy, Mahindra EV, and TI Clean Mobility.

Despite the overall dip in investments, the report suggests a resilient and diversified investment landscape in India, with traditional sectors regaining prominence and emerging opportunities in the manufacturing and EV domains.

(KNN Bureau)