Deal activity in Asia-Pacific down by 42%, in India by 50.8% in Feb, shows data

Deal activity in the Asia-Pacific (APAC) region, a critical market for global deal-making, has seen a significant decline of 42.2 per cent year-over-year in February 2023, as per GlobalData. Deal volume in the APAC region dipped from 1,392 deals in February 2022 to 805 deals that were announced in February 2023.

China, the top APAC market for venture capital funding deal activity saw a decline of 28.2 per cent on-year in terms of deal volume in February 2023. India, the second biggest market for VC funding, recorded a decline of 50.8 per cent in deal volume.

Other markets in the region including Japan, Australia, South Korea, Singapore, Hong Kong, Indonesia, and New Zealand also saw deal activity declining by 50 per cent, 45.9 per cent, 56.1 per cent, 35.1 per cent, 61.8 per cent, 58.3 per cent, and 35.3 per cent.

GlobalData lead analyst Aurojyoti Bose said: “The impact of strict COVID-19 policies and tightening regulations on technology companies had an adverse impact on the deal-making sentiments in China. Meanwhile, the prevailing volatile market conditions and macroeconomic challenges seemed to have taken a toll on other key APAC markets.”

The number of venture financing deals and private equity deals dropped by 41.7 per cent and 38.6 per cent respectively, while mergers and acquisitions deal volume fell by 43.2 per cent in February 2023, indicating a decline in all types of deals.

Bose stated that the decline in deal activity across the top markets in the APAC region highlights the cautious approach adopted by investors and companies amid an uncertain and geopolitical landscape.

The APAC region’s deal-making activity is sluggish and reflects the need for a cautious and measured approach by all stakeholders in the months ahead, said Bose.

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