EY – PE VC India Trend book, 2024

In 2023, the Indian PE/VC industry experienced a decline in overall investments, but certain sectors like real assets, infrastructure, and healthcare saw significant growth. The e-commerce sector faced challenges, while financial services remained active. PE/VC exits grew by 36%, reaching US$24.8 billion. The report explores the evolving strategies of VC funds and startups in response to market dynamics, focusing on achieving profitability and sustainable growth. Trends highlighted include a decline in overall investments, a shift in investment focus to real assets, and a rise in exits. Infrastructure led in investments, while traditional sectors like finance and technology declined. The healthcare sector saw record investments. PE/VC exits rose significantly, with a strong build-up in dry powder for future investments. Challenges in startup investments were noted, with a decline in deals and a slowdown in unicorn creations. Governance issues and valuation markdowns impacted investor confidence.