India's private equity, venture capital investments surpass $60 bn in 2022

India's private equity and venture capital investments have exceeded $60 billion for the third consecutive year in 2022, despite the challenging global economic conditions, according to a report released on Wednesday.

The report, titled "India Private Equity and Venture Capital Report 2022," was published by Bain & Company, in collaboration with the Indian Private Equity and Venture Capital Association (IVCA). It stated that India's PE-VC investments touched $60.1 billion in 2022, representing a 21% year-on-year growth from 2021.

The report highlighted that India's PE-VC industry witnessed a robust deal-making activity, with a record 1,545 deals in 2022, which was 18% higher than the previous year. Additionally, the average deal size increased by 2% to $39 million, reflecting the continued growth of the Indian start-up ecosystem.

The technology sector was the most significant contributor to the total investments, accounting for 50% of the total value of investments, with e-commerce, fintech, and software-as-a-service (SaaS) startups being the most popular sub-sectors.

The healthcare and life sciences sector also emerged as a key investment area, with the industry accounting for 17% of the total investments, mainly driven by the pandemic-led demand for healthcare services.

Commenting on the report's findings, Arpan Sheth, a partner at Bain & Company India, said, "Despite the global headwinds, India's PE-VC industry has continued to thrive, thanks to the country's robust start-up ecosystem, favorable government policies, and growing investor confidence. We expect this trend to continue, and the industry to further mature and diversify in the coming years."

The report also highlighted the increasing interest of global investors in the Indian start-up ecosystem, with the share of investments from foreign investors reaching 34% of the total investments in 2022, up from 29% in 2021.

In conclusion, the report demonstrated the resilience of India's PE-VC industry, which has continued to grow despite the global economic challenges, and predicts that the industry's growth trajectory will remain positive in the coming years.