Inflows from private equity, venture capital funds to domestic companies plunge to $27.9 billion in 2023
private equity and venture capital funds into domestic companies declined about 40 per cent to USD 27.9 billion so far this year, while the outflow increased marginally to USD 19.34 billion year-on-year. According to the numbers collated by Venture Intelligence that tracks private capital and debt flows, and industry body IVCA, investments by private equity and venture capital funds as of December 20, 2023, fell to a low of USD 27.9 billion across 697 transactions, as against USD 47.62 billion inflows in 2022 across 1,364 deals.
The year also saw more money being pulled out from the country by private equity players with overall exits touching USD 19.34 billion from 248 companies as against 233 exists worth USD 18.45 billion in 2022, according to the data.
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The funding slowdown this year is a temporary adjustment, and as we move forward, we expect renewed and robust inflows, said Rajat Tandon, president of IVCA (Indian Private Equity and Venture Capitalist Association).
He said the ongoing green shoots of funding indicates an opportune time for venture capitalists, domestic private equity and private capital firms to create pools of capital to cash in on emerging opportunities in the domestic startup ecosystem, which demonstrates resilience in the face of challenges, offer innovative solutions to current market needs, and possess the potential for sustainable growth.
