Private Equity and Venture Capital (PE-VC) funds invested $338 million across 10 deals in Tamil Nadu-based companies during the third quarter of 2023 (Q3 2023).
According to data shared by Venture Intelligence, a research service focused on private company financials, transactions, and their valuations, this represents a 21.76% decline compared to the second quarter of 2023 (Q2 2023). During Q2 2023, PE-VC funds pumped in $432 million across 21 deals.
Of the 10 companies that received funding in Q3 2023, nine are headquartered in Tamil Nadu, while one firm has moved its headquarters out of the State but continues to have the majority of its operations here.
Angel investments in Tamil Nadu-based companies have also fallen during the July-September quarter of 2023. Only five investments happened during this period, whereas 24 deals were struck in the April-June quarter.
Arun Natarajan, founder and managing director of Venture Intelligence, said: “This is not a Tamil Nadu-specific issue. Nationally, transactions have slowed down. Tamil Nadu has its core strengths in a few sectors, and when recovery happens, it will witness more investments,” he noted.
Data shows that at the national level, PE-VC funds invested $6 billion (across 139 deals) in India-based companies during the quarter ended September 2023, a 15% decline compared to the same period in 2022 (which saw $7 billion being invested across 327 deals).The investment amount also dipped by 49% compared to the last quarter, which saw $11.7 billion being invested across 202 deals.
