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Investments by <keyword id="34499" type="General" weightage="20" keywordseo="private-equity" source="Orion">private equity</keyword> (PE) and <keyword id="6357097" type="General" weightage="20" keywordseo="venture-capital" source="Orion">venture capital</keyword> (VC) funds to homegrown companies declined to $27.9 billion across 697 transactions this year (as of December 20), compared to $47.62 billion across 1,364 deals in 2022, according to a new report. 2023 saw more money being pulled out from the country by private equity players, with overall exits reaching $19.34 billion from 248 companies, in comparison to 233 exits worth $18.45 billion in 2022, according to data from Venture Intelligence and industry body IVCA. Meanwhile, venture <keyword id="989750" type="General" weightage="20" keywordseo="capital-funding" source="Orion">capital funding</keyword> for <keyword id="6362513" type="General" weightage="20" keywordseo="startups" source="Orion">startups</keyword> declined by 72 per cent this year compared to last year. The new-age companies in the country received $7.5 billion across all stages (as of December 15), compared with $25 billion last year, according to the data. The fall in <keyword id="6357455" type="General" weightage="20" keywordseo="funding" source="Orion">funding</keyword> this year is chiefly attributed to slow late-stage deals (Series D and above), which more than halved to $3.5 billion from $11.70 billion in 2022. The early-stage funding deals slowed down. The number of deals declined to almost half to 414 rounds from 871 rounds in the year-ago period, according to the report. Growth-stage funding rounds dropped to $1.9 billion via 99 deals, compared with $6.84 billion from 230 deals in 2022. Making a dent in India's startup growth story, the country slipped to fourth position in the global ranking among the highest-funded geographies in 2023, as it recorded lowest funding in five years. After grabbing the third spot globally in 2021 as well as in 2022, India ranked fourth behind the US, the UK and China this year, receiving only $7 billion in total funding (till December 5), according to recent data by global market intelligence platform Tracxn. In the third quarter (Q3) this year, India even slipped to fifth position among the highest-funded countries -- behind the US, the UK, China and France.

PE, VC investments in domestic companies drop to $27.9 bn in 2023

<ul><li>VC investments in India softened in the first quarter of 2023 but expected to pick up in the latter half of 2023 says a KPMG report. </li><li>This quarter, VC investors were inclined to make smaller investments in startups with more reliable valuations. </li><li>In Q1 2023, VC investment in Asia declined significantly, dropping from $25.5 billion in Q4 2022 to just $13.5 billion.</li></ul>VC investment in India has softened in the January-March quarter of 2023 as investors were picky and scrutinized potential deals more intensely, says a Venture Pulse report by KPMG. VC investments went down to $2.1 billion in the quarter, down by 77% as compared to the same quarter last year when VCs poured in $9.1 billion into the market. “Despite the current slowdown in VC funding, macro factors in India remained relatively strong compared to other jurisdictions, which is driving optimism that the country will see a bounce back in VC investment in the later half of 2023,” said the report. The FOMO effect VC investments in Q1 of 2023 hit a 11-quarter low, as VC investments were at $2.1 billion last in the second quarter of 2020 – right when the lockdowns had started. Soon after however came a boom time. KPMG says that Fear of Missing Out or FOMO drove a lot of VC investment in India in 2021 and early 2022. However, without the FOMO effect is now gone and VCs enhanced their focus on startup performance and profitability. “The biggest change in India is that the euphoria for deals has died down. The FOMO has gone. The big ticket deals have also dried up, which has had an outsized impact on our total investment numbers,” says Nitish Poddar, partner and national leader, PE KPMG in India. Fintech was still a major area of investment, with large deals such as PhonePe, NoBroker, KreditBee, and Insurance Dekho. Agtech and gaming also saw increased interest. However, edtech interest declined in Q1 2023 after a period of high enthusiasm. “But despite the visible decline, it’s important to know that a lot is still happening in India. The macros here are still very good. We’re still seeing a lot of funding in pre-series A deals. And we’re still seeing a lot of new micro funds being raised in the country — funds under $100 million with check sizes from $1–5 million,” says Poddar. VC investments in Asia decline, Down rounds go up In Q1 2023, VC investment in Asia declined significantly, dropping from $25.5 billion in Q4 2022 to just $13.5 billion. This was the lowest quarter for VC investment in the region since Q2 2015, with several factors contributing to the decline. In China, a surge in Covid-19 cases impacted VC activity prior to the New Year holidays. Hong Kong was affected by rising interest rates and a slowdown in IPO activity, while India experienced investors becoming more selective with their investments. Japan was the only country in the region to see an increase in investment during Q1 2023, but the total was still far lower than Q1 2022. The data also shows that down rounds (when the pre-money valuation of a fundraising round is lower than the post-money valuation of the round previous) has gone up significantly in 2023 as compared to the last year, the report reveals. In Q1 2023, the global VC investment trend showed a decline in each quarter following its peak of over $200 billion in Q1 2022. By Q1 2023, the total VC investment worldwide had dropped significantly, falling well below $60 billion. The uncertain global market, which is impacted by factors such as rising interest rates, domestic and geopolitical challenges, economic concerns, and the war in Ukraine, meant that no region was immune to the changing market conditions. This resulted in investors becoming increasingly cautious and risk-averse, leading to a reduction in VC investment activity.

FOMO out, scrutiny in: VC investments fall 77% in Q1 2023 says KPMG

<ul><li>Apart from being the world’s fifth richest person, <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> has so far sealed over $20 billion in investments for <keyword id="2003276" type="PERSON" weightage="20" keywordseo="Jio">Jio</keyword> Platforms and over $2 billion for <keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword>. </li><li>While India has seen $26.8 billion in PE and VC investments so far, $12.1 billion has gone to Reliance alone. </li><li>VC investments even though have been quite active this year, the total has fallen by 18% in value and 26% in volume as compared to previous year.</li></ul>2020 has been rough for many so far, but for <keyword id="6355199" type="ORGANIZATION" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> Chairman Mukesh Ambani, it is turning out to be a good year. Apart from being the world’s fifth-richest person, Ambani has sealed over $20 billion in investments for Jio Platforms and over $2 billion for Reliance Retail so far this year. In 2020, private equity (PE) and venture capital (VC) investment is clearly dominated by Reliance. According to a report by Venture Intelligence, the Reliance deals account for 45% of all PE-VC deals so far this year. And while India has seen $26.8 billion in investments so far, $12.1 billion has gone to Reliance alone. It doesn’t even include the $10.2 billion Ambani received from tech giants <keyword id="6354576" type="UNKNOWN" weightage="20" keywordseo="facebook">Facebook</keyword> and <keyword id="6355629" type="DEFINITION" weightage="20" keywordseo="google">Google</keyword>. <div type="image" title="RIL_ PE VC final." msid="78422305" hostid="261"></div> Reliance Retail investments so far <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Investment in Reliance Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stake in Reliance Retail </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Silver Lake </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹9,375 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.13% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">KKR </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5,550 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.28% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">General Atlantic </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,675 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.84% </td></tr></tbody></table> Reliance Jio total investments <div type="image" title="Jio final investment." msid="78422712" hostid="261"></div> It is also worthy to note that Mukesh Ambani isn’t done yet with raising the moolah. Reliance Retail and its <a href="https://www.businessinsider.in/business/news/mukesh-ambani-jio-fiber-and-reliance-invit-set-to-raise-over-1-billion-from-abu-dhabi-and-saudi-sovereign-funds-for/articleshow/76888352.cms">fibre InvIT</a> are set to raise more funds. VC investments fall in 2020 Though Reliance deals have garnered a major share, the overall venture capital investment picture remains tepid. Total investments have fallen by 18% in value and 26% in volume as compared to the previous year. <div type="image" title="VC 2020 final." msid="78422341" hostid="261"></div> Some of the big-ticket investments by startups include Zomato’s $250 million investment, Dream11’s $225 million, BYJU’s over $1 billion investments from PE and VC firms, among others. SEE ALSO: <a href="https://www.businessinsider.in/business/news/mukesh-ambani-jio-fiber-and-reliance-invit-set-to-raise-over-1-billion-from-abu-dhabi-and-saudi-sovereign-funds-for/articleshow/76888352.cms">Mukesh Ambani is not done – Jio Fiber to get over $1 billion as Abu Dhabi and Saudi sovereign funds are set to invest in Reliance InvIT</a> <a href="https://www.businessinsider.in/india/news/air-tickets-booked-during-the-lockdown-are-entitled-to-a-full-refund-or-a-credit-shell-till-march-31/articleshow/78421535.cms">Relief for passengers who cancelled air tickets during the lockdown — Supreme Court accepts DGCA recommendations</a> <a href="https://www.businessinsider.in/business/news/reliance-retail-raises-another-1875-crore-as-silver-lake-comes-back-with-an-additional-investment/articleshow/78412992.cms">Reliance Retail raises another ₹1,875 crore as Silver Lake comes back with an additional investment</a> <a href="https://www.businessinsider.in/tech/news/indian-startup-giants-are-considering-a-made-in-india-alternative-for-app-store-in-a-bid-to-tackle-googles-monopoly/articleshow/78421318.cms">Indian startup giants are considering a 'Made in India' alternative for app store — in a bid to tackle Google's 'monopoly'</a>

Reliance has bagged nearly half of all private equity investments in India this year – and that doesn’t include the $10 billion from Facebook and Google

<ul><li>Through 159 <keyword id="6391790" type="UNKNOWN" weightage="20" keywordseo="deals">deals</keyword>, India saw PE-VC investments worth $10 billion in Q1 2019. </li><li>The investment value is 26% up from the same quarter in 2018. </li><li>It’s still large ticket deals and not the number of deals that has contributed to the growth.</li></ul>In the first quarter of 2019, India has seen a great deal of activity in the <keyword id="34499" type="POSITION" weightage="20" keywordseo="private-equity">Private Equity</keyword> and Venture Capital space. Through 159 deals, PE-VC firms invested $10 billion in the country, according to data research firm <a href="http://ventureintelligence.blogspot.com/2019/04/private-equity-investments-up-26-to-10.html">Venture Intelligence</a>. The total investment value is up by 26% from the same quarter in 2018. According to a <a href="https://economictimes.indiatimes.com/news/economy/finance/pe-vc-investment-in-india-at-usd-20-5-billion-in-2018-report/articleshow/68612408.cms">report</a> by Grant Thornton, the total PE, VC funding stood at $20.5 billion in 2018 through 786 deals. Now, in 2019, the country has already seen an investment value of $10 billion in just three months, which goes on to show that India is set to witness a higher funding and bigger deals this year. The major beneficiaries so far this year happened to be companies related to infrastructure holding 48% of the investment value in Q1 which were worth $4.9 billion. In the tech deals, it was Delhivery and Firstcry’s funding from Softbank that contributed to the investment growth from the VC side. Delhivery had raised $395 million from Softbank in early March, while the Japanese investment firm had pumped in $150 million in the babycare startup Firstcry. However, the investment value growth continues to be because of <a href="https://www.businessinsider.in/large-ticket-deals-drive-rise-in-private-equity-investments-in-india-this-year/articleshow/68296615.cms">large ticket deals</a>. Number of deals from the VC segment stood at 94 in Q1 19, while Q1 18 had seen 124 deals, stated Venture Intelligence. See Also: <a href="https://www.businessinsider.in/large-ticket-deals-drive-rise-in-private-equity-investments-in-india-this-year/articleshow/68296615.cms">Large ticket deals drive rise in private equity investments in India this year</a> <a href="https://www.businessinsider.in/delhivery-raises-395-million-from-softbank-enters-the-unicorn-club-of-india/articleshow/68287009.cms">Delhivery becomes India’s first unicorn in 2019, thanks to SoftBank</a>

Indian funding deal value in the first three months of 2019 is over half of last year's total

<ul><li>According to reports, <keyword id="34499" type="POSITION" weightage="20" keywordseo="private-equity">private equity</keyword> and <keyword id="6357097" type="DEFINITION" weightage="20" keywordseo="Venture-Capital">venture capital</keyword> investments grew 14% in February with investments worth $1.96 billion. </li><li>The investments are up thanks to large ticket deals across the country. </li><li>With India’s rising number of unicorns and relaxed norms for angel tax, the country is set to see funding deals across stages.</li></ul>For Indians startups it has been a great start to the year with increased funding. In February alone, private equity and venture capital investments grew 14% with investments worth $1.96 billion happening in India, according to data from Venture Intelligence, a data research firm. The month of January had seen a total of <a href="https://timesofindia.indiatimes.com/business/india-business/pe-vc-funding-up-14-on-big-ticket-push/articleshow/68261744.cms">$1.71</a> billion investment for startups and businesses alike. The funding in February grew by 40% when compared to investments in February 2018. <table style="border-width: initial; border-style: none; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">February 2018 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">February 2019 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">Total PE/VC investments in $mn </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">1,401 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">1,963 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">January 2018 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">January 2019 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">Total PE/VC investments in $mn </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">2,254 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">1,719 </td></tr></tbody></table> Data from Venture Intelligence So far this year, while the number of deals have dropped since the same period last year, there has been a rise in the deal value. That is because of large ticket <keyword id="7399281" type="UNKNOWN" weightage="20" keywordseo="investments-in-2019">investments in 2019</keyword> that led to the increase in total amount of funding in the first two months of 2019. According to the report, investments in Greenko Energy, Aadhar Housing Finance, Ayana Renewable Power along with a bunch of startup deals helped rake up the numbers in February this year. "An increase in large-ticket investments also reflects the rise in confidence of the investors and strengthening the role of PE/VC fraternity as growth capital providers," Pankaj Chopda, director, Grant Thornton India LLP had earlier told <a href="https://economictimes.indiatimes.com/markets/stocks/news/pe-investments-see-36-rise-in-jan-grant-thornton/articleshow/68188905.cms">ET </a>regarding the growth in investments in January, For early-stage deals in the country, a big relief came in from the Indian government by changing the definition of startup to exclude the burden of Angel Tax. An entity will now be considered a startup for a period of 10 years from the date of its incorporation as opposed to the earlier norm of seven years, according to an official Gazette notification by the government. The exemption for angel tax for shares issued or proposed has also been hiked to an aggregate limit of ₹25 crore from ₹10 crore. This will likely further boost investments in the country as early stage investors will not be wary of tax. India’s fast-growing startups have garnered interest from PE/VC funds from across the world. There are now over 20 unicorns in the country. With many more like logistics startup Rivigo, e-commerce startup BigBasket steps away from rising to the unicorn status, India is surely set to see more funding soon. See Also: <a href="https://www.businessinsider.in/delhivery-raises-395-million-from-softbank-enters-the-unicorn-club-of-india/articleshow/68287009.cms">Delhivery becomes India’s first unicorn in 2019, thanks to SoftBank</a> <a href="https://www.businessinsider.in/after-minting-1-billion-from-flipkart-sale-sachin-bansal-is-now-betting-big-on-ola/articleshow/67526383.cms">Watch out Uber. Sachin Bansal gets Ola share after selling Flipkart</a> <a href="https://www.businessinsider.in/for-indian-startups-2018-has-been-a-year-of-bouncing-back-as-venture-capital-funding-doubles/articleshow/67286540.cms">For Indian startups, 2018 has been a year of bouncing back as venture capital funding doubles</a>

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PE, VC investments in domestic companies drop to $27.9 bn in 2023

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FOMO out, scrutiny in: VC investments fall 77% in Q1 2023 says KPMG

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Reliance has bagged nearly half of all private equity investments in India this year – and that doesn’t include the $10 billion from Facebook and Google

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Indian funding deal value in the first three months of 2019 is over half of last year's total

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Large ticket deals drive rise in private equity investments in India this year

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