PE, M&A deals from startups witness significant increase

In July 2023, the private equity deal experienced a surge from startups, as they surged ahead with 29 deals totalling of US$ 133 million.

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In July, the landscape of private equity deal activity was notably shaped by startups, which took the lead with 29 deals amounting to US$ 133 million. These figures constituted a substantial 44% of the entire PE volume. The latest update from Grant Thornton Bharat Dealtracker, a source that monitors PE and M&A transactions, brought forward a significant observation. The count of PE deals underwent a moderate decrease, recording a total of 66 deals valued at US$ 1.1 billion. These statistics mark the second-lowest monthly results in terms of both deal volume and total value since August 2020.

Within the startup realm, the retail sector emerged as the frontrunner in deal activity. It was closely trailed by the edtech, fintech, and enterprise segments, together accounting for 55 percent of the total deal volumes within the startup sector.

July saw a continued notable presence of B2B startups, which contributed to more than 52 percent of the total deal count. The average size of private equity deals saw an uptick at $16.5 million, as compared to the $12 million figure recorded in July 2022.

The month witnessed the documentation of 95 PE and M&A transactions, accumulating a sum of US$ 3.1 billion. Although the volume of deals experienced a decline of 46% in comparison to the same period in 2022, the market surged with a 58% jump in deal value. This growth was primarily driven by the appearance nine big-ticket transactions exceeding the US$ 100 million mark, aggregating an impressive US$ 2.1 billion