The number of merger and acquisition (M&A) deals during 2023 dropped 10 per cent on an annual basis to 793, said a PwC India report on Sunday.

However, the total disclosed deal value for M&A declined much steeper at 38 per cent during the year, according to the report titled ‘Deals at a glance’.

The report further observed that PE (private equity) investments totalled $36 billion, marking a substantial 36 per cent drop from 2022.

Despite this decline, the average investment size per deal increased to $46 million from $42 million in 2022, reflecting a potential shift towards larger opportunities.

While early-stage investments were 53 per cent less compared with that in 2022, the report said, these along with growth-stage investments continued to make up the major share, constituting around 73 per cent of funding in 2023.

On the other hand, buyouts demonstrated resilience with only a 5 per cent decline compared with 2022.

This suggests a nuanced landscape, where investors show interest in diverse strategies and larger-scale ventures, even amid an overall decrease in PE investments, the report said.

“In 2023, India resiliently navigated global headwinds, solidifying its appeal to international investors. The economic fundamentals stay strong reflecting investor enthusiasm for the country’s expanding economic opportunities and this optimism is also echoed in PwC’s latest CEO Survey.

“Despite a restrained deal-making environment throughout the year, the deal activity stabilised towards the last quarter leading us to anticipate an upswing in 2024,” said Dinesh Arora, partner & leader deals, PwC India.

In calendar year 2023, PwC said the retail and consumer sector emerged as the most active sector with technology finishing up marginally behind for the second consecutive year.

Following closely were the professional services and fintech sectors, which exhibited high activity in terms of volume. Meanwhile, financial services, renewable power, and healthcare dominated in deal value. The top 10 deals included JV buyouts and strategic investments.

PTI