PE investments nosedive 77.5% to $3.8 billion in Q3

Reflecting the overall decline in funds flows into startups especially since the Ukraine war, private equity investments plunged 77.5 per cent to USD3.84 billion in the September quarter, according to an industry report. On a sequential basis, fund inflows declined 43.5 per cent from USD 6.80 billion in the June quarter and a massive 77.5 per cent from USD17.05 billion in the September 2021 quarter, according to the data collated by Refinitiv, an arm of the London Stock Exchange Group and a leading provider of financial markets data.

The number of deals also fell by 14.6 per cent to 408 from 478 on-year, but increased 14.6 per cent from 356 in the June quarter. On a year-to-date basis, private equity investments fell 33 per cent in the first nine months of 2022 to USD19.6 billion, the report said.

Internet-specific and computer software companies continued to attract funds, accounting for 68.6 per cent of the private equity dollars so far this year. Companies in these sectors attracted USD 7.47 billion down 51.8 per cent on-year, and USD5.96 billion down 29.3 per cent, respectively during the first nine months of the year.

However, the number of deals in the inflows internet-specific sectors rose to 396 in the nine months period from 389. Similarly, inflows into the financial services companies fell 25.7 per cent, while to industrials declined 12.4 per cent. However, transportation saw inflows rising 56.8 per cent, communications saw it soaring by 950.1 per cent, and computer hardware got 197.4 per cent more funds. Similarly, inflows into the financial services companies fell 25.7 per cent, while to industrials declined 12.4 per cent.

The top 10 PE deals during the nine months of 2022 included VerSe Innovation (USD827.7 million), Think & Learn (USD800 million) Bundl Technologies and Bharti Airtel (USD700 million each), Tata Motors Electric Mobility (USD494.7 million) Ntex Transportation Services (USD330 million), Busybees Logistics Solutions (USD324.7 million), Delhivery (USD304 million), Renkube (USD300 million) and EQX Analytics (USD270 million). Meanwhile, India-based PE funds raised USD 8.98 billion during the first nine months of 2022, up 123.5 per cent from USD 4.02 billion. Domestic PEs are sitting over deployable funds of USD 26 billion now. Meanwhile, India-based PE funds raised USD 8.98 billion during the first nine months of 2022, up 123.5 per cent from USD 4.02 billion.