Here is the bar chart comparing the Year-over-Year (YOY) growth in key sectors from H1 2023 to H1 2024. It highlights the substantial growth in the IT/ITeS sector, with more modest changes in healthcare and consumer technology investments.

In the first half of 2024, India’s private equity (PE) and venture capital (VC) markets have shown signs of stabilizing, with cautious optimism driving steady investment levels of around $23–24 billion. This follows a period of correction in 2023 as the market recalibrated. A sectoral shift has been evident, with information technology (IT) and IT-enabled services (ITeS), healthcare, and consumer technology leading the charge.

The IT/ITeS sector saw a major resurgence, with investment reaching $4.5 billion in H1 2024, a dramatic increase from the $1.5 billion invested in all of 2023. IT/ITeS now holds a 25% share of total deal value, largely due to significant buyout deals, including EQT’s $3 billion investment in Perficient and TPG’s $0.9 billion in Altimetrik.

Consumer technology also experienced robust growth, with deal value rising 55% year-over-year (YoY) to $2.3 billion in H1 2024, driven by notable investments in companies like Zepto ($665 million) and Meesho ($275 million). The broader venture capital environment’s recovery bolstered this sector, as investors continue to support high-growth companies.

The healthcare sector maintained a 17% share of total deal value, despite a slight dip in overall investments, from $3.8 billion in H1 2023 to $3.2 billion in H1 2024. Medtech dominated healthcare deals, representing 35% of the sector’s deal value, with high-profile transactions like KKR’s $840 million investment in Healthium Medtech and Warburg Pincus’ $300 million in Appasamy.

In contrast, total PE deal value dropped by 10% YoY, from $19 billion to $17 billion, mainly due to a 20% decline in deal volume. However, there was a shift toward larger transactions, with the average deal size rising by 15% to $265 million. Buyouts became more prominent, increasing to 55% of total PE deal value, reflecting investors’ preference for acquiring control in high-quality assets across sectors like IT, healthcare, and consumer goods.

Global funds were particularly active, driving 75% of PE investments in India during H1 2024, with top global PE funds deploying $10 billion, surpassing 2023’s total of $8 billion. EQT was the most active investor, with over $3.5 billion invested in deals like Perficient and WSO2. Meanwhile, domestic funds accounted for 10% of the total PE deal value and saw successful fundraising, such as Kedaara’s $1.75 billion raise.