CHENNAI: Investments by Private Equity-Venture Capital ( PE-VC ) firms nose-dived in July, which also recorded the lowest number of deals this year. The month ( July 2024 ) had 64 deals with a collective investment value of$ 1.7 billion, a sharp decline by about 49 % over the previous month of June at$ 3.3 billion.
According to research data released on Wednesday by research firm Venture Intelligence, it is also a decrease of$ 200 million in comparison to the same period last year, which was$ 1.9 billion. The only positive aspect of July’s deal count is that it had seven more than 57 offers in CY2023.
The largest transaction in July this year was made by American property management company Brookfield, which announced the acquisition of a majority interest in Tamil Nadu-based Leap Green Energy with an honest funding of over$ 200 million and an option to invest additional$ 350 million. Following that, international private equity firm KKR announced that it would purchase a controlling interest in Kerala-based Baby Memorial Hospital for$ 300 million. July had four mega PE-VC deals, each valuing more than$ 100 million, with a collective value totalling$ 1.2 billion.
Arun Natarajan, leader, Venture Intelligence said, on a month-on-month evaluation, it comes down to how many big offers went through during a certain time when compared with another. All indications for the rest of the year are simply good now that the election-related uncertainty has been removed, the Union budget is taking certain favourable steps to promote PE-VC investments, and the public market, particularly the IPO segment, is powerful. He told TOI that Ola Electric, a seven-year-old younger business that was raising Series E rounds last year, is proof enough of how rapidly the habitat has advanced.
The overall benefit of talks decreased by 20 % in the current calendar year on a YTD schedule. While an funding totaled$ 17 billion during the January-July period of this year, it reached$ 21.3 billion during the same CY2023-month period.
