The decline in overall investments happened despite the number of deals being 26 per cent higher during the same period at 283 transactions, the report by industry lobby grouping IVCA and consultancy firm EY said.
“Geopolitical tensions have created uncertainty, dampening investment sentiment as investors become more cautious, leading to slowing deal-making. This sluggishness may persist if global uncertainties continue,” the consultancy firm’s partner Vivek Soni said.
However, the firm’s outlook remains “cautiously optimistic” as India’s fiscal health remains strong, he added.
Large deals of over USD 100 million more than halved to 21 with a cumulative value of USD 5.5 billion, the report said, adding pure-play PE/VC deals, excluding real estate and infrastructure, were 30 per cent lower at USD 6.5 billion.
The largest deal during the quarter in the pure play PE/VC investments was the acquisition of GeBBS Healthcare Solutions by EQT from ChrysCapital for USD 860 million, the consultancy firm said. The quarter recorded exits of USD 8.2 billion, which was 8 per cent lower than the value recorded in the year-ago period, while by volume, the same was 19 per cent lower at 71 transactions.
PE and VC funds raised USD 1.7 billion in new funds for future investments during the quarter, which was 37 per cent lower than the year-ago period, it said, specifying the largest fundraise was the USD 500 million raised by 360 ONE WAM for its secondary fund.