PE, VC investments fall to $2.2 billion in February as big-ticket deals dry up

Private equity and venture capital investments declined to USD 2.2 billion in February, 39 per cent down when compared with the year-ago period's USD 3.7 billion, a report said on Thursday.

On a month-on-month basis PE, VC investments have witnessed a decline of 67 per cent.

The number of deals were higher at 120 transactions in February, as compared to 86 deals in January and 57 in February 2023, the report by industry lobby group IVCA and consultancy firm EY said.

"This is the second lowest monthly total for PE/VC investments since February 2021. We remain cautiously optimistic as the election super cycle unfolds in India and globally, with many large economies going to the polls in 2024," the consultancy firm's partner Vivek Soni said.

In February, there were seven large deals of USD 100 million or above aggregating to USD 1 billion, which is 82 per cent lower than the USD 5.7 billion in January 2024 and 66 per cent lower than the USD 3 billion in the year-ago period, the report said.

Byju's USD 200 million rights issue and NIIF's investment in iBus Network for the same amount were the largest transactions in February, the report said.

In the overall activity of USD 2.2 billion in February, buyouts alone accounted for USD 750 million, the report said, adding startup investments were the second largest at USD 554 million across 65 deals.

From a sector point of view, infrastructure was the largest at USD 412 million in February, followed by technology and financial services with USD 359 million and USD 253 million, respectively.
The month recorded 39 exits worth USD 2.9 billion, compared to USD 731 million in February 2023 across 12 deals, the report said.

It recorded total fundraise of USD 1.3 billion, compared to USD 1.1 billion raised in January 2024 and USD 869 million in February 2023, the report said.