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Economic Times
07-05-2025
- Business
- Economic Times
India PE-VC market rebounds in 2024 to $43 bn; VC, growth investment spur momentum
After two years of shrinking, India's private equity and venture capital (PE-VC) investments sprung back in 2024, growing about 9 per cent to reach USD 43 billion across nearly 1,600 deals, and outlook for 2025 remains cautiously optimistic, a latest report said on Wednesday. ADVERTISEMENT The 2024 rebound, primarily fuelled by VC and growth investments while PE dealmaking remained steady, were part of insights in Bain & Company's 'India Private Equity Report 2025', released in collaboration with the Indian Venture and Alternate Capital Association (IVCA). "After two years of contraction, India's private equity and venture capital (PE-VC) investments staged a recovery in 2024, growing by approximately 9 per cent to reach USD 43 billion across close to 1,600 deals, with traditional sectors taking the lead in driving market growth," it said. The recovery strengthened India's position as Asia-Pacific's second-largest PE-VC destination, capturing about 20 per cent of the total investment and reflecting growing investor confidence in the country's macroeconomic stability. While India's overall increase was primarily driven by VC and growth investments, PE investments maintained stability at USD 29 billion, as funds navigated high valuations in buoyant public markets, making deal closures more challenging. "We are seeing a clear shift towards buyout deals, with their share of overall PE deal values rising to about 51 per cent in 2024 from about 37 per cent in 2022. This reflects a strategic emphasis on securing control positions in high-quality assets across sectors, enabled in part by record dry powder, and signals that buyouts could remain central to PE activity as funds seek scalable value creation opportunities," Prabhav Kashyap, Partner at Bain & Company, said. ADVERTISEMENT Real estate and infrastructure, and select traditional sectors like IT/ITeS, financial services, healthcare-led funding. Other traditional sectors (such as energy, manufacturing) eased after growing for two years, with a subdued year for deal closures amid high valuations driven by public markets and increased competition. Real estate and infrastructure led the pack at 16 per cent of total PE-VC investment clocking in an approximately 70 per cent surge in deal value over the previous year. Financial services saw a robust growth of about 25 per cent, driven by NBFCs, especially in affordable housing finance, with 14 deals, including seven USD 100 million-plus transactions in 2024, it said. ADVERTISEMENT Healthcare funding remained resilient and showed "impressive momentum" with an 80 per cent rise in deal volumes, supported by large medtech transactions such as Healthium and Appasamy, increased investments in pharma CDMOs, and continued growth in provider deals. The IT and IT-enabled services sector recorded "extraordinary growth" of about 300 per cent, led by major deals including Perficient (USD 3 billion), Altimetrik (USD 900 million), and GeBBS (USD 865 million), with significant activity in revenue cycle management investments. ADVERTISEMENT The year 2024 also marked a watershed year for exits. India exits surpassed all other markets in Asia-Pacific with values reaching an impressive USD 33 billion, representing a 16 per cent year-over-year growth. Investors increasingly looked at buoyant public markets to exit maturing positions. ADVERTISEMENT Public market exits gained prominence, increasing their share from 51 per cent of total exit value in 2023 to 59 per cent in 2024, driven by heightened IPO activity and successful block trades. The market witnessed 33 IPOs compared to 23 in 2023, with consumer-focused sectors dominating close to 55 per cent of total IPO value, demonstrating strong investor appetite for consumer-centric businesses. The domestic fund-raising landscape reached new heights in 2024. Kedaara Capital set a new benchmark by closing its largest-ever fund at about USD 1.7 billion, while ChrysCapital is said to have raised a record USD 2.1 billion. The 2025 outlook remains cautiously optimistic, underpinned by several positive macroeconomic indicators, including strong GDP growth trajectory alongside cooling inflation; robust private consumption growth; impressive rural demand growth; and strategic policy measures, including the first interest rate cut in five years.
Time of India
07-05-2025
- Business
- Time of India
India PE-VC market rebounds in 2024 to $43 bn; VC, growth investment spur momentum
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Live Events After two years of shrinking, India's private equity and venture capital (PE-VC) investments sprung back in 2024, growing about 9 per cent to reach USD 43 billion across nearly 1,600 deals, and outlook for 2025 remains cautiously optimistic, a latest report said on 2024 rebound, primarily fuelled by VC and growth investments while PE dealmaking remained steady, were part of insights in Bain & Company's ' India Private Equity Report 2025', released in collaboration with the Indian Venture and Alternate Capital Association ( IVCA )."After two years of contraction, India's private equity and venture capital (PE-VC) investments staged a recovery in 2024, growing by approximately 9 per cent to reach USD 43 billion across close to 1,600 deals, with traditional sectors taking the lead in driving market growth," it recovery strengthened India's position as Asia-Pacific's second-largest PE-VC destination, capturing about 20 per cent of the total investment and reflecting growing investor confidence in the country's macroeconomic India's overall increase was primarily driven by VC and growth investments, PE investments maintained stability at USD 29 billion, as funds navigated high valuations in buoyant public markets, making deal closures more challenging."We are seeing a clear shift towards buyout deals, with their share of overall PE deal values rising to about 51 per cent in 2024 from about 37 per cent in 2022. This reflects a strategic emphasis on securing control positions in high-quality assets across sectors, enabled in part by record dry powder, and signals that buyouts could remain central to PE activity as funds seek scalable value creation opportunities," Prabhav Kashyap, Partner at Bain & Company, estate and infrastructure, and select traditional sectors like IT/ITeS, financial services, healthcare-led funding. Other traditional sectors (such as energy, manufacturing) eased after growing for two years, with a subdued year for deal closures amid high valuations driven by public markets and increased estate and infrastructure led the pack at 16 per cent of total PE-VC investment clocking in an approximately 70 per cent surge in deal value over the previous year. Financial services saw a robust growth of about 25 per cent, driven by NBFCs, especially in affordable housing finance, with 14 deals, including seven USD 100 million-plus transactions in 2024, it funding remained resilient and showed "impressive momentum" with an 80 per cent rise in deal volumes, supported by large medtech transactions such as Healthium and Appasamy, increased investments in pharma CDMOs, and continued growth in provider IT and IT-enabled services sector recorded "extraordinary growth" of about 300 per cent, led by major deals including Perficient (USD 3 billion), Altimetrik (USD 900 million), and GeBBS (USD 865 million), with significant activity in revenue cycle management year 2024 also marked a watershed year for exits surpassed all other markets in Asia-Pacific with values reaching an impressive USD 33 billion, representing a 16 per cent year-over-year growth. Investors increasingly looked at buoyant public markets to exit maturing market exits gained prominence, increasing their share from 51 per cent of total exit value in 2023 to 59 per cent in 2024, driven by heightened IPO activity and successful block market witnessed 33 IPOs compared to 23 in 2023, with consumer-focused sectors dominating close to 55 per cent of total IPO value, demonstrating strong investor appetite for consumer-centric domestic fund-raising landscape reached new heights in 2024. Kedaara Capital set a new benchmark by closing its largest-ever fund at about USD 1.7 billion, while ChrysCapital is said to have raised a record USD 2.1 2025 outlook remains cautiously optimistic, underpinned by several positive macroeconomic indicators, including strong GDP growth trajectory alongside cooling inflation; robust private consumption growth; impressive rural demand growth; and strategic policy measures, including the first interest rate cut in five years.
Time of India
07-05-2025
- Business
- Time of India
IPO exits may take a hit amid slowdown
Mumbai: With some companies looking to delay their public listings amid a choppy market, investor exits through IPOs are likely to take a hit this year after recording a big jump in 2024, a joint report by Bain & Company and IVCA (Indian Venture and Alternate Capital Association) said, hinting at a slowdown in broader PE-VC ( private equity and venture capital ) deal activity amid tariff-feuled global uncertainty. "...corrections in Indian public markets since Q4 2024 could potentially temper the IPO exit momentum," analysts value of IPO exits more than doubled to nearly $4 billion in 2024 from $1.8 billion in 2023 as more firms went public last year, riding on a buoyant market, giving investors enough opportunity to cash number of IPO filings so far this year has been lower compared to the same period last year and for companies facing pressure from investors to give them an exit, reduction in issue size and valuation readjustments are on the table as bigger IPOs may not sail through in a volatile market. "From an LP (limited partner) perspective, the exit is a very important path for them to be able to get liquidity. LPs are not seeing the kind of cash they would like to, and for certain funds, there's no choice but to go ahead and seek an exit. Some companies hence are looking at cutting the issue size and tempering IPO valuations," Prabhav Kashyap, partner at Bain & Company told a bull run last year, activity in India's IPO market has slowed, with companies like LG Electronics delaying listing plans for its India Tuesday, EV startup Ather Energy fell nearly 6% from its issue price following a muted listing. Urban Company, which recently filed draft IPO papers, slashed the size of its IPO to Rs 1,900 crore from the earlier targeted Rs 3,000 crore, with the offer for sale (OFS) component that gives exit to investors forming the bulk of the PE-VC investments rebounded in 2024 after two years of contraction. Investments increased by about 9% year-on-year to $43 billion, helped by growth in VC deals (in terms of volumes). The broader deal environment this year remains cautious, with investors betting more on companies that have higher exposure to local markets. "Deal activity is always impacted when there's any kind of uncertainty. In the case of sectors like manufacturing and pharmaceuticals, investors are assessing the potential impact from tariffs. There is a slowdown in overall investments. The big deals that have been announced this year were in the works and have only been closed now," Kashyap added.
