PE/VC roundup October 2024

A snapshot of PE/VC activity during October 2024

According to the IVCA-EY monthly PE/VC roundup, PE/VC investments in October 2024 were 40% higher than September 2024.

Investments

PE/VC investments in October 2024 recorded US$4.7 billion, 4% higher than in October 2023 (US$4.5 billion) and 40% higher than in September 2024 (US$3.4 billion). In terms of deal volume, October 2024 saw a 21% increase with 91 deals compared to 75 in October 2023.

October 2024 recorded nine large deals (deals with value greater than US$100 million), aggregating US$3.3 billion, a 4% decline in value from October 2023 (US$3.4 billion across 11 deals) and 69% higher than September 2023 (US$2 billion across eight deals). The largest deal of the month involved Temasek acquiring 18% stake in VFS Global Services from Blackstone for US$950 million.

Credit investments led the way in October 2024, with US$1.8 billion invested across nine deals — a staggering increase from US$169 million across five deals in October 2023, marking nearly tenfold growth in investment. Growth investments were the second largest, with US$1.6 billion invested across 14 deals in October 2024, a growth of 32% compared to US$1.2 billion across 17 deals in October 2023. Start-up investments were the third largest at US$880 million across 56 deals, reflecting 50% decline compared to October 2023 (US$1.8 billion across 42 deals). Buyout investments recorded US$228 million across four deals, an 80% decline from October 2023 (US$1.2 billion across four deals). PIPE investments stood at US$195 million across eight deals, showing a slight 2% increase from October 2023 (US$191 million across seven deals).

From a sector point of view, infrastructure was the top sector in October 2024, attracting US$1.8 billion in PE/VC investments across nine deals, followed by technology (US$1.1 billion) and financial services (US$470 million). These sectors, combined, accounted for 72% of total PE/VC investments in October 2024.

Spotlight: Pure-play growth investments

Pure-play growth investments continue to drive the PE/VC landscape

Over the past decade, pure-play growth opportunities have seen significant investment, attracting a total of US$95.9 billion across 1,181 deals, representing 31% of all investments made since 2014. This trend has accelerated in recent years, particularly since 2019. A total of US$71.4 billion was poured into 743 deals, accounting for 31% of all investments in the sector. Growth investments strategy is closely followed start-up investments, which attracted the highest investments since 2019 (US$78.3 billion) in pure-play class.

Since 2019, large deals have dominated the growth investment landscape, contributing US$58.1 billion across 163 deals and accounting for 81% of total growth strategy investments.

In 2020, pure-play growth investments reached a historic high of US$21.3 billion across 101 deals. This surge was primarily driven by two marque opportunities in which a number of growth investors invested; US$9.9 billion investment in Jio Platforms and a US$6.4 billion investment in Reliance Retail Ventures.

From a sectoral perspective, telecommunications has been the largest recipient of growth capital in this period at US$10.3 billion, followed by retail and consumer products at US$9.3 billion, driven largely by the two major deals in Jio Platforms and Reliance Retail Ventures. E-commerce ranked third with US$9.2 billion of growth investments, highlighted by the landmark US$3.6 billion deal in Flipkart.

Mature and growth-stage companies are typically more stable and established than early-stage startups, with proven business models that reduce investment risk. These companies also offer potential early exit opportunities, through IPOs or acquisitions, etc., enabling PE/VC investors to realize returns in a shorter time frame and often at healthy valuations.

PE/VC investments in India are fueled by a combination of factors, including market expansion opportunities, globalization, a strong investor appetite for high-growth assets, and technological advancements. As India’s economy continues to evolve, growth investments are expected to play an increasingly pivotal role in shaping the PE/VC landscape and driving long-term economic development.

Exits

October 2024 recorded nine exits worth US$1.1 billion, compared to US$1.9 billion in October 2023 across 22 exits.

Secondary exits were the highest in October 2024 at US$1.1 billion across four deals and accounted for 96% of overall exits in October.

The largest exit in October saw Blackstone sell an 18% stake in VFS Global services to Temasek for US$950 million.

Fundraise

In October 2024, total fundraises amounted to US$209 million across 10 funds, a significant decrease compared to US$2.4 billion raised in October 2023 and US$481 million in September 2024.

The largest fundraise of the month was National Space Promotion and Authorisation Centre raising $119 million.