Last Update: January 10, 2023, 17:30 IST
According to the report, PE investments in the December quarter totaled US$ 3.61 billion, down 8.1 per cent sequentially from US$ 3.93 billion and fell 67.2 per cent year-on-year, when it stood at US$ 11.06 billion. (Representational image)
Internet-specific, computer software and transportation attracted most of the funding, accounting for 66 percent of the total of US$8.58 billion during the year.
According to an industry report, private equity investment in domestic companies is set to fall 42 per cent year-on-year to USD 23.3 billion in 2022, the lowest since 2019, when it stood at USD 15.8 billion.
The numbers reflect the overall funding winter that the startup space in particular, and overall foreign investment in general, has been witnessing since 2019 ukraine The war began last February.
Private equity investment inflows into the country are set to decline by a sharp 42 per cent to USD 23.3 billion in 2022 over the previous year – the lowest annual inflows since 2019 when it was USD 15.8 billion, but still comparable to historical levels is also relatively high, said Elaine Tan, a senior analyst at Refinitiv, the LSEG business arm that provides financial market data and insights.
The report did not specify how many deals were closed during the year.
According to the report, PE investments in the December quarter totaled US$ 3.61 billion, down 8.1 per cent sequentially from US$ 3.93 billion and fell 67.2 per cent year-on-year, when it stood at US$ 11.06 billion.
According to the report, the total number of deals in Q4 fell 24.8 percent to 333 from 443 in Q3 and fell 19 percent from Q4 of 2021, when transactions stood at 411. Tan attributed this to ongoing geopolitical tensions in Western economies, rising interest rates and recession fears, which all made global investors cautious about investing.
Internet-specific, computer software and transportation attracted most of the funding, accounting for 66 percent of the total of US$8.58 billion during the year.
The internet-specific sector has seen a 57.4 per cent decline in fund inflows, while the number of deals declined from 556 in 2021 to 528 in 2022.
Computer software companies saw a 46.4 percent decline in funding taps, financial services (down 34.6 percent), as well as medical and health saw a decline of 26.4 percent from 2021 levels.
However, inflows almost doubled, with a 93 percent increase in industries serving transportation needs, a 225.6 percent increase in communications, and a 215.8 percent increase in fund flows to agriculture/forestry/fisheries.
Tan expects this trend to continue as investors move away from China amid growing uncertainty, and India And Southeast Asia can benefit from this change.
Of the total, domestic PE funds are expected to raise USD 13.7 billion in 2022, up 163.2 per cent from 2021 when it raised only USD 5.21 billion. This pushes the substantial capital waiting to be deployed as India-based PE fundraising activity totals USD 32 billion from 2019 to 2022.
Think and Learn and Versa Innovation were at the top of Deal Street, receiving US$800 million each from PE in the year, followed by Bharti Airtel and Bundle Technologies at US$700 million, Tata Motors Electric Mobility (US$494.7 million) , Reliance Retail (US$343.5 million), NTEX Transportation Services (US$330 million), Delhivery (US$304 million) and BusyBizz Logistics Solutions and Raincube received US$300 million each.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)