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PE, VC investments in Aug 80% lower than last year

As per the IVCA-EY monthly PE/VC roundup, August 2022 recorded investments worth $2.2 bn across 83 deals, including five large deals worth $972 mn.

DTNEXT Bureau

NEW DELHI: August 2022 recorded $2.2 billion in PE/VC investments, 80 per cent lower than the investments in same month last year.

As per the IVCA-EY monthly PE/VC roundup, August 2022 recorded investments worth $2.2 bn across 83 deals, including five large deals worth $972 mn.

Exits recorded $3.1 bn across 25 deals in August 2022, the highest value of exits in 2022. VivekSoni, Partner and National Leader, Private Equity Services, EY said, "August 2022 recorded $2.2 billion in PE/VC investments, 80 per cent lower than the investments in August 2021. After remaining resilient for almost seven months amid global headwinds of tightening liquidity and rising inflation, Indian PE/VC investment flows for the first time have shown tepidness, reaching a 19-month low. Investors are being more circumspect in making investment decisions and taking longer to close deals as the competitive pressures witnessed in the previous year have ebbed and the cost of capital has gone up."

All deal segments recorded sharp declines on a y-o-y basis, in the range of 70 pc-90 pc, primarily due to the absence of large deals. August 2022 recorded just five large deals (of value greater than or equal to $100 mn) aggregating $972 million, compared to 18 large deals worth $9.2 billion in August 2021 and seven deals worth $3.3 billion in July 2022.

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