Private equity and venture capital in India - statistics & facts

Private equity and venture capital have played the role of a lucrative springboard in providing growth capital for Indian businesses. In just the last few years, these two alternative investment channels have moved from around twenty-billion-dollar opportunity to almost 56 billion dollars in 2022.

What’s the difference between private equity and venture capital deals?

Private equity and venture capital investments mark a big trend within the finance sector, especially in the United States. Common to both forms of investment is that an investor obtains equity in a private (and therefore not publicly listed) entity. The decision to make an investment is generally made under purely financial considerations aiming to a beneficial exit. In private equity, mostly large institutional investors buy at least the majority of shares of an already matured company and try to make it more profitable. In contrast, venture capital investors finance start-ups and small businesses from the technology sector. As this is more risky, the percentage of acquired shares is much lower and many investors spread their investments into different start-ups. The attraction of venture capital is particularly important for those start-ups that do not have access to debt instruments.

The rise of PE/VC investments in India

While the concept of private equity and venture capitals were present in India in many forms since the 1960s, the industry saw a growth mainly after economic reforms in 1991. The vibrancy and rapid growth rate of the industry has attracted global as well as domestic attention in the last decade. The expansion of private equity and venture capital in the last few years can be attributed to a burgeoning middle class and better access to technology that provided access to a larger consumer base. From policymaking perspective as well, India is emerging as a favorable destination for foreign investors which is evident in the country's rise in ease of business rankings in the last years.

Investments in startups

During the last decade, start-up funding was very popular among PE/VC investments. E-commerce attracted the highest number of deals in 2022 followed by enterprisetech. However, the value of startup investments declined as compared to 2021, which was the record year for startup investments. This is considered to be a consequence of 'funding winter' or drying up of capital inflows, in this case as a result of geopolitical factors such as Russia's war on Ukraine, inflationary pressures and market slowdown. Experts believe the bearish investment sentiment might continue in the coming year.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Mar 24, 2023

Key insights

Value of private equity invested worldwide in 2022
2,248bn USD
Value of PE/VC investments
56.4bn USD
Value of PE/VC exits
18.29bn USD
Get more insights

Editor’s Picks Current statistics on this topic

Value of private equity and venture capital investments across India from 2015 to 2022 (in billion U.S. dollars)

Investment Funds

Value of PE/VC investments India 2015-2022

Number of private equity and venture capital investment deals across India in 2022, by sector

Investment Funds

Number of PE/VC investments in India 2022, by sector

Total number of private equity and mergers & acquisitions deals in India from 2016 to 2022

M&A & Private Equity

Number of deals in PE and M&A in India 2022

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