Maharashtra topped in attracting PE investments in FY24, overall investment dropped substantially
May 03, 2024
New Delhi [India], May 3 : Maharashtra has emerged as the top state, surpassing Karnataka in total money flow for the fiscal year 2023-24 in terms of private equity investments (PE funds) in India. In 2022-23, Karnataka has topped the list for maximum PE investments in the state.
Mumbai, the financial capital of India, has clinched the spotlight by becoming the leading city for investments by receiving an investment of USD 7.3 billion, according to a report titled 'India Invests' by Wealth 360 One.
Maharashtra, Karnataka, Haryana, Delhi, and Tamil Nadu are the top five states to attract substantial investments by private equity funds.
In terms of cities, Mumbai, Delhi NCR, Bengaluru, Chennai, and Pune are the top cities which attracted maximum PE investments.
However, the investments in FY24 is up to 30 percent less as compared to FY23 in most of the states. The experts have attributed the decline to the reduced investment in Indian Startups.
Mumbai has surpassed India's silicon city Bengaluru in attracting PE funds as Startups funding has substantially lowered in FY24.
As per the Ministry of Commerce and Industry data, India houses 1.7 lakh registered Startups, collectively generating over 1.2 million jobs. Maharashtra leads with 5801 Startups, followed by Delhi NCR with 3150, Karnataka with 3032, and Tamil Nadu with 2810 Startups.
PE funds investing between USD 100-250 million range, is down by 60 per cent. While those investing USD 500 million or more too have gone down drastically by over 80 per cent. The funds who are investing less than USD 100 million have also registered a decline of 30 per cent.
Despite facing a slight decrease in total value, Bengaluru, India's renowned tech capital, remains a major player, securing the third position in terms of investment value with USD 2.8 billion in FY23-24. Notably, Chennai has made a remarkable entry into the top cities list, displacing Hyderabad, with an impressive investment of USD 1.5 billion.
Delhi NCR has solidified its position as the second top destination after Maharashtra, attracting investments worth USD 4.8 billion in FY 23-24. However, states like Delhi and Haryana, housing Gurugram, witnessed slower deal activity compared to Maharashtra and Karnataka.
However, Tamil Nadu showcased positive growth trends, signalling a promising outlook for private equity investments totalling USD 1.5 billion in the state during FY 23-24.
The report sheds light on the reshuffling observed among the top five states, with Tamil Nadu making a notable entry, displacing Telangana to claim the fifth spot in terms of volume.
