Private equity and venture capital in India - statistics & facts

Private equity and venture capital have played the role of a lucrative springboard in providing growth capital for Indian businesses. In just the last few years, these two alternative investment channels have moved from around twenty-billion-dollar opportunity to almost 50 billion dollars in 2023.

What’s the difference between private equity and venture capital deals?

Private equity and venture capital investments mark a big trend within the finance sector, especially in the United States. Common to both investment forms is that an investor obtains equity in a private (and therefore not publicly listed) entity. Investing is generally made under purely financial considerations aiming for a beneficial exit. In private equity, large institutional investors buy at least most shares of an already matured company and try to make it more profitable. In contrast, venture capital investors finance start-ups and small businesses from various sectors that show potential for long-term growth. As this is riskier, the percentage of acquired shares is much lower and many investors spread their investments into different start-ups. The attraction of venture capital is significant for those start-ups that do not have access to debt instruments.

Navigating the shifts: The rise and fall of private equity and venture capital in India

While the concept of private equity and venture capitals were present in India in many forms since the 1960s, the industry saw a growth mainly after economic reforms in 1991. The vibrancy and rapid growth rate of the industry has attracted global as well as domestic attention in the last decade. The expansion of private equity and venture capital in the last few years can be attributed to a burgeoning middle class and better access to technology that provided access to a larger consumer base. However, in 2023, a significant negative shift has been observed in the private equity/ venture capital deals. This sudden shift is influenced by global factors such as weak investor sentiments and macroeconomic challenges.

Investments in startups

During the last decade, start-up funding was very popular among PE/VC investments. E-commerce attracted the highest number of deals in 2023 followed by enterprisetech. However, the value of startup investments declined compared to 2021, which was a record year for startup investments. This is a consequence of 'funding winter' or drying up of capital inflows, in this case, due to geopolitical factors such as wars, inflationary pressures, and market slowdown. Experts believe the bearish investment sentiment might continue this year.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, May 31, 2024

Key insights

Value of private equity invested worldwide
1.75tn USD
Value of PE/VC investments
56.4bn USD
Value of PE/VC exits
18.29bn USD
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Current statistics on this topic

Value of private equity and venture capital investments across India from 2015 to 2023 (in billion U.S. dollars)

Investment Funds

Value of PE/VC investments India 2015-2023

Value of private equity and venture capital investments across India from 2021 to 2023, by sector (in billion U.S. dollars)

Investment Funds

Value of PE/VC investments in India 2021-2023, by sector

Number of private equity and venture capital investment deals in startups across India from 2014 to 2023

Investment Funds

Number of PE/VC start-up investments India 2014-2023

Recommended statistics

Overview

4

Overview

Deals

4

Deals

Investment by sector

6

Investment by sector

Investments by type

5

Investments by type

Exits

3

Exits

Further reports

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Private equity worldwide
Private equity worldwide
Banking in India
Banking in India
Startup funding in India
Startup funding in India
Foreign direct investments into India
Foreign direct investments into India
Fintech in India
Fintech in India

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