The month saw 16 outflows worth $2.5 billion, compared to $3 billion in July 2023. | Representative image
Investments in Indian entities by venture capital and private equity funds declined sharply to $2.7 billion in July this year, according to a report released on Wednesday.
Bets were 42 percent lower than $4.6 billion in the previous month, June, and 35 percent lower than $4.1 billion in July last year, according to the report by industry lobby group IVCA and consultancy EY.
Interestingly, the number of transactions increased from 68 to 81 in the same period last year, indicating that the size of transactions decreased.
“The second half of 2024 appears to be off to a weak start. We expect private equity and venture capital investors to adopt a cautious attitude as concerns over global uncertainties, inflation and geopolitical tensions take hold, weighing on investor sentiment and willingness to invest additional capital,” said the firm’s partner Vivek Soni.
He added that the budget has been “net positive” for the sector and added that the removal of the angel tax should stimulate investor interest in the startup space.
The number of large deals valued at more than $100 million each fell to six by July 2024 and the aggregate value of $1.5 billion was 58 percent lower compared to the same period last year, according to the report.
Acquisition investments had the largest share in July 2024, with $1.2 billion invested in five deals compared to $2.9 billion in six deals in July 2023, it said, adding that early-stage investments rose 31 percent to $729 million to become the second-largest category.
The month saw 16 outflows worth $2.5 billion, compared with $3 billion in July 2023 in 20 deals, it said.
PE and VC funds raised $434 million for future investments during the month, which was broadly similar to June this year, but higher than the same period last year.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 14, 2024 | 11:10 PM IS
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