PE investments plunge to 6-yr low in Q1 2024: Here are the top 10 deals

Private equity investments in India plunged to a six-year low in the first quarter of 2024, as the sum of equity invested amounted to $1.8 billion, down 44% from the same period last year, shows data analysed by LSEG Deals Intelligence. This downturn signifies the weakest start to the year by value since 2018. 

In addition, private equity fundraising activity in India amounted to S$1.5 billion during the first quarter of 2024, witnessing a 46% drop from a year ago.  However, it notably experienced a three-fold increase compared to the fourth quarter of 2023. 

In the first quarter of 2024, private equity investments amounted to $1,778 million, indicating a 25.0% substantial decline from Q4 2023 ($2,370 million). The total number of firms that invested in India in Q1 2024 increased by 10.6% to 366 compared to the previous quarter 331 in Q4 2023 but decreased by 1.9% compared to the 373 firms in Q1 2023. This brings private equity investments in Q1 2024 fell to 43.6% from a year ago (Q1 2023). 

Where are PE investors putting their money? 

Internet Specific and Financial Services companies attract maximum PE interest with $560 million and $291 million, respectively in in Q1 2024.

In terms of industry-specific investments, Internet Specific and Financial Services have seen the maximum investments coming in Q1 2024 and captured 48% of the market share. Sum of equity invested in the Internet Specific sector has decreased by 57.2%, with the number of deals falling to 87 from 117 from Q1 2023.  Computer Software (-70.5% yoy), Transportation (-53.4% yoy), have witnessed a decline in the sum invested as compared to Q1 2023. However, industries catering to Consumer related (222.1%), and Business Serv. (743.8.%) saw an increase in the sum of equity invested.

Fundraising in India: Fundraising activity for funds located in India has seen a 45.0% increase to 1,481.04 million in Q1 2024 from USD 465.0 million in Q1 2023. 

Top 10 PE Deals in India