Private Equity and Venture Capital (PE-VC) companies have invested $1,378 million through 61 deals in Tamil Nadu-based firms in 2023, a dip of about 49.65% compared to 2022.
In 2022, PE-VC firms invested $2,737 million through 75 deals, according to the data provided by Chennai-headquartered Venture Intelligence, a research service focused on private company financials, transactions and their valuations.
The data was collated until December 26, 2023. Even angel investments in the State dipped in 2023. This year, the State witnessed 61 deals, compared to 81 in the previous year.
Arun Natarajan, Founder and Managing Director, Venture Intelligence, said that even nationally, the investments were low.
‘We have been seeing this trend from the second half of 2022,” he added. He further said that there were some interesting trends in the State in 2023.
“For instance, new large ticket PE players entered in 2023, which was a mega trend. Also, though none of the big SaaS [Software-as-a-Service] firms managed to raise funds, we saw a new set of IT firms that had received funds this year,” he added.
He further said: “In 2023, we saw companies taking controlled transactions. For instance, Westbridge Capital acquired a big stake in Kovai Pazhamudir Nilayam and BPEA EQT acquired a majority stake in digital engineering firm Indium Software.”
