Private equity investments in India surge 46% to $15 bn: Top deals of 2024

Private equity investments in India surged to $15 billion in 2024, marking a 46.2% increase from the previous year, shows data analysed by LSEG Deals Intelligence.

 

This growth was driven by sectors such as healthcare and pharmaceuticals, consumer-related industries, and technology. 

 

Private Equity Investments in India: Top Deals of 2024

Topping the list is Data Infrastructure Trust, which has secured $2.17 billion in a significant deal involving 1 transaction across 3 firms. 

 

Following closely is Kiranakart Technologies Pvt Ltd, which has made waves with 4 deals totaling $1.36 billion. The company, operating in the Internet Specific sector, epitomizes the thriving e-commerce landscape in India. Alongside Kiranakart, Manash Lifestyle Pvt Ltd and Meesho Payments Pvt Ltd have also marked their presence with deals valued at $298.3 million and $275 million, respectively. 

 

In the Transportation sector, Hyundai Motor India Limited attracted attention with a $989 million investment.

 

Another notable investment comes from Fourth Partner Energy Pvt Ltd, which secured $274 million in the Industrial/Energy sector.

 

Several technology and consumer-oriented companies also made their mark in 2024. Axelia Solutions Pvt Ltd garnered $216 million, while PhysicsWallah Pvt Ltd attracted $210 million, both within the Internet Specific sector.

 

Rebel Foods Pvt Ltd, known for its cloud kitchen model, secured $210 million, indicating a robust demand for food delivery services. Meanwhile, Mintifi Pvt Ltd, with its focus on Computer Software, raised $180 million, showcasing the continued growth of software solutions in various sectors. 

Top 10 Deals for 2024

 excludes Pending Acquisitions, VC Partnership,Real Estate  

 

India's expanding middle-class population, robust startup ecosystem, and strong IPO market provided ample opportunities for investors.

 

India remains one of the top markets in the Asia Pacific for financial sponsor activity, accounting for at least 28% of the region's total equity investments during this period, up from a 15% market share the previous year.

 

However, private equity funds raised in India fell  29% year-on-year in 2024 to US$4.3 billion. Despite this decline, the total PE funds raised over the last three years reached approximately US$23 billion, earmarked for deployment in India.

 

Favorable government initiatives, anticipated global monetary easing, diverse sector opportunities, and a rising interest in integrating ESG into growth strategies are some of the key factors expected to drive private equity activity in India in 2025. 

Here’s the table summarizing investments by company industry: 

 

 

Internet-Specific Investments Soar

The Internet Specific sector emerged as a powerhouse in the investment realm, with 368 deals totaling $4.49 billion in equity invested, marking a 15.8% year-on-year increase. The number of participating companies reached 326, indicating a robust interest in digital ventures. This sector's resilience underscores the continued expansion of online services and platforms, driven by consumer demand for innovative digital solutions.

 

Communications: A Surprising Surge

The Communications industry saw a staggering increase of 5963.4% in equity investment, despite only 7 deals worth $2.22 billion. This anomaly suggests that strategic investments in communications infrastructure are becoming a priority, possibly in response to heightened global connectivity needs.

 

Software and Transportation: Mixed Results

While the Computer Software sector recorded 393 deals with $2.18 billion invested, it experienced a 16.8% decline from the previous year. Conversely, the Transportation industry demonstrated resilience with 49 deals and $1.54 billion invested, reflecting a 61.9% increase in interest. This growth in transportation suggests a renewed focus on logistics and mobility solutions, particularly post-pandemic.

 

Financial Services and Consumer-Related Investments

Investment in Financial Services surged, with 63 deals and a 105.5% increase in equity invested, totaling $1.32 billion. Similarly, Consumer Related sectors saw 134 deals and an impressive 172.1% increase, indicating robust consumer confidence and spending patterns.

 

Healthcare Gains Momentum

The Medical/Health sector reported a notable 66.4% increase in investments, with $817 million distributed across 58 deals. The Biotechnology industry also thrived, with a 503.7% increase, emphasizing the growing importance of healthcare innovation and research.

 

Challenges for Industrial and Energy Sectors

On the flip side, the Industrial/Energy sector faced a 19.8% decline, with $638 million invested across 70 deals. This downturn highlights the challenges posed by supply chain disruptions and changing energy policies. Additionally, Computer Hardware investments were modest, with 43 deals and a 16.8% increase, but the overall figures suggest cautious optimism.

 

Emerging Sectors and Niche Markets

Despite the volatility in traditional sectors, niche markets like Construction and Utilities demonstrated remarkable growth. The Construction sector, despite its small size, reported an astronomical 14219.2% increase, driven by urgent infrastructure needs.