India well-poised to get to $80-100 billion PE-VC deployments in 5 years: report
global macro conditions rebound over time. However, India will continue to benefit from outsized capital allocation and is expected to reach $80-100 billion in annual deployment over the next five years, Bain & Company partner Prabhav Kashyap told ET.
This estimate compares to about $39 billion in 2023, as per a report by Bain & Company called India Private Equity Report 2024. Deal activity had reduced about 35% from $62 billion in 2022.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitMITMIT Technology Leadership and InnovationVisitIndian School of BusinessProfessional Certificate in Product ManagementVisit“In the short term, there have been some question marks… but if you look at our gross domestic product (GDP) levels and map it to PE penetration so far as seen in more mature markets such as the US, there is every reason to believe that it is going to get to $80-100 billion in 4-5 years,” Kashyap told ET.
Sectors such as healthcare, advanced manufacturing, electronics, and electric vehicles (EV) were those with massive deal-making potential in the near-term, the report said.
“While PEs are currently identifying the must-go-after assets and doubling down on those, on the flip side, there are also deals that may have seen more interest during 2021-22 peaks. Those are not getting as much traction as investors are very focussed on quality now,” Kashyap said.
Within advanced manufacturing, PE firms are trying to feed in on an
