Despite the slowdown in investment activity, more than $24 billion ( 1.87 trillion) private equity and venture capital money has flown into Indian startups so far in 2022. According to Bain & Company, there were about 630 deals in January-May, while 775 deals worth $19 billion were done. 1.45 trillion) in the year-ago period.
The Indian startup ecosystem is undergoing a rapid recovery in valuations. The report by Bain and the Indian Venture and Alternative Capital Association states, “The fund has been able to adapt to changes by expanding its check size, investing in deeper target relationships, and increasing value-creation capabilities by establishing specialized portfolio teams.” for changing strategies.”
According to the India Private Equity Report 2022, the funding outlook for 2022 is expected to be grim, after a prolific year for deal activity and exit in 2021, amid macro tensions of inflation, geopolitical uncertainties and supply chain disruptions. Is.
“Funding has become costly and valuations may see some downside and we may also see rounds down… While it is difficult to predict whether this will be necessary, with funding rounds getting delayed or cancelled, Naman Bansal, Associate Partner and Member Private Equity Practice, Bain said.
Traditional funds are increasingly seeking buyout opportunities, with Blackstone, Baring, Carlyle, Advent, GIC and KKR each investing more than $1 billion in buyouts over the past three years.
“Buyings are attractive as they allow greater control over value creation for high-value deals through operational turnaround and deeper regional focus. We expect to see more diversified fund strategies like this one as the Indian market becomes more volatile. Attracts investors.”