PE-VC investments fall 20% QoQ

Chennai: Private Equity – Venture Capital (PE-VC) investments paused during the January-March 2022 period, dropping on a sequential basis from the October-December 2021 quarter.
PE-VC firms invested more than $15.1 billion (across 346 deals) in Indian companies in the first three months of 2022, according to data from research firm Venture Intelligence. This represents a 72% increase from the $8.8 billion (out of 257 deals) invested during the same period in 2021, but a 20% drop from the previous quarter which saw investments of a value of $18.9 billion across 344 transactions.
Sharp corrections in U.S. tech stock prices and the performance of recently publicized mainstream Indian tech companies are expected to make private investors more selective in funding late-stage tech startups in 2022, compared to 2021, according to the report. analysts. .
“There is a realignment going on in terms of choice sectors and investment stages, said Arun Natarajan, founder and managing director of Venture Intelligence. “While we are likely to see a pause in late-stage technology funding from global PEs and VCs, there is no shortage of dry powder. In the next quarter, we will likely see more deals, but less value in terms of total PE-VC investment,” he said.
The Qatar Investment Authority’s $1.5 billion bet on new media and consumer tech-focused Bodhi Tree platform (co-created by media veteran Uday Shankar and James Murdoch’s Lupa Systems) , was the largest of the quarter. This deal was followed by the $700 million investment in Invesco-led food delivery platform Swiggy, making it a “decacorn” (companies valued at over $10 billion). Other top deals include blockchain company Polygon’s $450m fundraising, enterprise voice-focused Uniphore Software, which raised $400m and analytics firm Fractal which raised $360 million. Despite the pause, the quarter still saw 14 new unicorns minted during the period.
Any impact from geopolitical issues in the event of a Russia-Ukraine crisis will likely only be felt in the April investment tally and beyond, analysts said, as private market deal announcements are typically made with a month lag.

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