Investors injected nearly $57 billion in capital across 1,300+ deals in Indian private companies, according to the India Private Investments Report 2024 by Praxis Global Alliance.
Strategic sectors like energy and renewables, engineering and construction, real estate, healthcare and life sciences, and BFSI accounted for nearly 60% of total private credit deals in 2023.
According to the report, India has managed to insulate itself from the global economic slowdown and continued with a vigorous funding season. The average deal size was 29% higher than last year, primarily driven by larger deals, with 21 deals exceeding $500 million.
“Investors remain bullish on the India growth story with LP (Limited Partner) allocations to private credit in India expected to increase in 2024 and beyond. Abundant dry powder, a thriving startup ecosystem, and rising exits will boost private investments in India,” said Madhur Singhal, Managing Partner at Private Capital, Praxis Global Alliance.
Sectors including healthcare, consumer, retail, and manufacturing saw strong capital inflow on account of surplus demand from the China+1 strategy. Export-oriented IT and SaaS service segments also contributed heavily to private investment performance. Green investments also came into focus as the magnitude of cleantech deals rose substantially to $8 billion in 2023.
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According to the report, the country’s evolving regulatory framework, robust domestic capital market, and significant investor base have further led to a surge in public listing plans for private companies in 2023. Overall exit activity reached an all-time high in 2023 to $26 billion.
The year also witnessed an upswing in buyout deals, which accounted for deals worth $12 billion and were mainly driven by conglomerates, restructuring, platform creation, and operational improvements.
The entire ecosystem in India also witnessed a shift from LPs and sovereign wealth funds to direct investments. The share of private equity funds in the total fundraising value increased to 64% in 2023 from 35% in 2021, the report noted.
Edited by Kanishk Singh
