August 2024 recorded PE/VC Investments worth US$2.9 billion across 92 deals: EY-IVCA Report

• Growth investments was the highest deal type in August 2024 at US$1.5 billion followed by start-up investments
• PE/VC exits in August 2024 were at US$2.8 billion, a 36% decline y-o-y; open market exits were the highest in August 2024 at US$2.3 billion across 13 deals
• The largest deal of the month involved General Catalyst, Dragon Fund, EPIQ Capital, and others, investing in KiranaKart Technologies (Zepto)

Mumbai, 16 September 2024: According to the IVCA-EY monthly PE/VC roundup, PE/VC investments in August 2024 were 5% higher in value terms compared to July 2024.

Vivek Soni, Partner and National Leader, Private Equity Services, EY said, “In August 2024, PE/VC investments recorded US$2.9 billion, a 47% decline from August 2023 but a 5% increase from July 2024. The number of deals in August 2024 saw a 31% year-on-year increase.

Pure play PE/VC investments in August 2024 recorded US$2.1 billion, marking a 34% year-on-year decline (US$3.1 billion) but a 13% increase from July 2024 (US$1.8 billion). The number of deals saw a 36% year-on-year increase, with 79 deals in August 2024 compared to 58 in August 2023. Investments in the real estate and infrastructure asset class amounted to US$838 million, a 63% drop year-on-year (US$2.3 billion) and 10% lower than July 2024 (US$928 million).

Growth investments, the largest deal type in August 2024, recorded US$1.5 billion, accounting for 51% of overall investments. This was followed by start-up investments (US$695 million). From a sector point of view, financial services emerged as the top sector, attracting US$548 million in PE/VC investments.

PE/VC exits in August 2024 recorded US$2.8 billion across 28 deals, reflecting a 36% year-on-year decline (US$4.3 billion in August 2023). Open market exits in August 2024 accounted for 81% of the total exit value (US$2.3 billion).

After a sluggish July, deal momentum has remained subdued in the second half of 2024. The average number of deals per month in the first half of 2024 was 110, but the initial two months of the second half have seen a 20% decline, with a monthly average of 88 deals. This trend is also evident in large deals (deals with value greater than US$100 million). While a few large deals helped sustain PE/VC investments in the first half of 2024 that averaged 12 large deals per month, the second half of 2024 has seen a sharp decline, averaging only seven large deals per month. We have seen only four deals exceeding $1 billion in value in 2024 so far as compared to six $1 billion plus deals in the first 8 months of 2023. We think this is primarily on account of mismatch in valuation ask between buyers and sellers.

Although India’s fiscal health remains good and overall macro-economic environment is positive, overall deal momentum is sluggish due to ongoing geopolitical tensions and material bid-ask spreads between buyer valuations and seller expectations. A correction in asset prices or a rerating of earnings growth should help close this gap and increase the value and volume of deal closures.  We remain cautiously optimistic.”

Investments

PE/VC investments in August 2024 reached US$2.9 billion, 47% lower than in August 2023 (US$5.4 billion) but 5% higher than in July 2024 (US$2.8 billion). In terms of deal volume, August 2024 saw a 31% increase with 92 deals compared to 70 in August 2023.

August 2024 recorded eight large deals (valued at over US$100 million), aggregating US$1.7 billion, a 63% decline in value from August 2023 (US$4.6 billion across 14 deals). The largest deal of the month involved General Catalyst, Dragon Fund, EPIQ Capital, and others, investing US$340 million in KiranaKart Technologies (Zepto).

Growth investments had the largest share in August 2024, with US$1.5 billion invested across 20 deals compared to US$2.3 billion across 13 deals in August 2023, marking a decline of 34%. Start-up investments were the second largest, with US$695 million invested across 50 deals in August 2024, a growth of 79% compared to US$387 million across 27 deals in August 2023. Buyout investments ranked third, with US$431 million across six deals, reflecting 10% growth from August 2023 (US$391 million across six deals). PIPE investments recorded US$215 million across 10 deals, a sharp 90% decline from August 2023 (US$2.2 billion across 20 deals). Credit investments stood at US$79 million across six deals, down 65% from August 2023 (US$229 million across four deals).

From a sector point of view, financial services was the leading sector in August 2024, attracting US$548 million in PE/VC investments across 18 deals, followed by e-commerce (US$533 million) and infrastructure (US$425million). Together, these sectorsaccounted for 52% of total PE/VC investments in August 2024.

Exits

August 2024 recorded 28 exits worth US$2.8 billion, compared to US$4.3 billion in August 2023 across 37 exits.

Open market exits were the highest in August 2024 at US$2.3 billion across 13 deals, followed by PE-backed IPO at US$441 million.

The largest exit in August 2024 saw Antfin Singapore Holding selling a 2% stake in Zomato for US$570 million.

Fundraise

August 2024 recorded total fundraises of US$828 million, across 12 funds, compared to US$1.5 billion raised in August 2023 and US$434 million in July 2024.

The largest fundraise in August 2024 was US$500 million raised by 360 ONE WAM.

Notes to Editors

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About IVCA

The Indian Private Equity & Venture Capital Association (IVCA) is the apex body promoting the Alternative Investment Funds (AIFs) in India and promotes stable, long-term capital flow (Private Equity (PE), Venture Capital (VC) and Angel Capital) in India.

With leading VC/ PE firms, institutional investors, banks, corporate advisers, accountants, lawyers, and other service providers as members, it serves as a powerful platform for all stakeholders to interact with each other. Being the face of the industry, it helps establish high standards of governance, ethics, business conduct and professional competence. With a prime motive to support the ecosystem, it facilitates contact with policy makers, research institutions, universities, trade associations and other relevant organizations. Thus, support entrepreneurial activity, innovation, and job creation.