India Receives 20% of Private Equity and Venture Capital Investments in Asia-Pacific in 2022

By Consultants Review Team Wednesday, 19 April 2023

A report that was published on Wednesday stated that India attracted 20% of the total Private Equity and Venture Capital (PE-VC) investments in the Asia Pacific region last year. This highlights India as a positive outlier, given the decrease in capital flow across the region.

The report, which was produced by the consulting firm Bain & Company in collaboration with the Indian Venture and Alternate Capital Association (IVCA), indicated that investments amounting to $61.6 billion were made in India last year. This was the third time that India surpassed the $60 billion benchmark in terms of investment.

According to the 'India Private Equity Report 2022', the country is expected to witness more than 2,000 deals in the upcoming year, which is consistent with the strong trend observed in previous years. The report also reveals that there was a 50% surge in investments in the Banking, Financial Services, and Insurance (BFSI), healthcare, energy, and manufacturing sectors, amounting to $28 billion. This is attributed to the robust domestic consumer sentiment prevailing in these industries.

Investments in the clean energy and electric vehicles sectors amounted to $8 billion, indicating a preference for ESG (Environmental, Social, and Governance) investing. However, investments in consumer technology and IT/ITeS witnessed a decline. The healthcare sector saw some significant exits throughout the year.

Arpan Sheth, a Partner at Bain & Company and co-author of the report, stated in a statement released in Washington, "Despite the near-term global slowdown, the long-term prospects of the Indian market continue to be positive. The strong fundamentals of the Indian economy make it an attractive destination for private equity. This is evident from the fact that India has exceeded $60 billion in investments for the third consecutive year."

India's share of Private Equity and Venture Capital (PE-VC) investments in the Asia-Pacific region has been steadily rising. Currently, Indian assets receive $1 out of every $5 invested in the region.

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