New Delhi, Oct 13 (SocialNews.XYZ) The Indian startup sector saw a significant drop in deal activity in 2023 (year-to-date) compared to the same period in 2022, a report showed on Friday.
Overall, there was a 39 per cent decrease in the number of deals and a 68 per cent decrease in their total values, according to Grant Thornton Bharat's ‘Q3 Deal tracker Report.’
This decline was particularly pronounced in the mergers and acquisitions (M&A) landscape, where values plummeted by 83 per cent this year. This steep drop can be attributed to the absence of some of the massive billion-dollar deals witnessed in the YTD period 2022, according to the report.
In the private equity (PE) sector, there was a 40 per cent reduction in the number of deals and a 28 per cent decrease in their values compared to YTD 2022.
The third quarter (July-September period) this year witnessed a deal volume of 302 deals with values amounting to $13.4 billion in the country.
In Q3, the startup sector, along with e-commerce and IT & ITeS, led the way, accounting for 64 per cent of total deals.
“With growth-oriented policies, reduced inflation, and increased infrastructure spending, India's domestic growth is set to fuel deal activities, particularly in traditional sectors (pharmaceuticals and healthcare) and the ever-accelerating digital transformation landscape (e-commerce and IT & ITES),” said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.
The report said that India's economic prospects for 2023-24 remain upbeat, supported by growth-oriented policies, subdued inflation, and heightened infrastructure investments.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz