Venture Capital (VC) and Private Equity (PE) funds had bet on traditional businesses instead of areas such as consumer technology, software as A Service (SAAS) and software in 2024.
According to the data, major VC funds like Ban and Company, Pitchbook, Venture Intelligence, VCC Edge and AVCJ and Peak 15 in this traditional sector increased rapidly to 23 percent during the year 2024, while it was 14 percent a year ago.
The multi-stage venture capital company LightSid’s stake increased by more than doubled in 2024 to 23 percent in 2024 compared to 11 percent of the year 2023, while the stake of other VC company Z47 saw an increase of up to 16 percent during 2024 while it was only 7 percent in 2023.
Traditional trades they are investing in include consumer retail, banking, financial services and insurance (BFSI), manufacturing, shipping and logistics, engineering and construction, real estate, infrastructure and healthcare. During the year 2024, the investment in the BFSI sector increased by 3.5 times as compared to the previous year and reached $ 1.1 billion through 42 deals. Of these, 47 percent of the deals were more than $ 5 million.
The most powerful sector in this category was affordable housing and NBFCs where the value of deals increased by 12 times in the year 2024, while the deals increased by 5 times in green financeing (finance in areas with environmentally friendly activity). Due to food and beverages (F&B) and interest in fashion related fields, the total value of deals in the consumer retail also reached 90 crores in the year 2024 and increased 2.2 times compared to 2023.
First Published – March 23, 2025 | 10:10 pm IST