Private Equity and Venture Capital (PE/VC) fund investments fell to USD 3.4 billion in October, according to a study released on Tuesday. The bets were 3% lower in value than the previous year, and 19% lower than the previous month, according to a research by industry lobbying organization IVCA and consulting firm EY.

According to the data, the number of deals or volumes was also lower in October, with 70 transactions compared to 80 the previous year and 83 the month before. "Although the Indian consumption story continues to remain strong, the increase in uncertainty on account of global factors and impending state and central elections in India seem to be slowing down progress in deal pipeline activity," Vivek Soni, a partner at the consultancy firm, said.

Soni stated that he is "cautiously optimistic" about the future of PE/VC investments, particularly in the startup industry. The month of October saw nine significant agreements totaling USD 2.4 billion, a 9% rise over the previous year, according to the study, with Abu Dhabi Investment Authority's (ADIA) USD 598 million stake in Reliance Retail Venture being the highest.

In October, startup investments totaled USD 1.3 billion, more than doubling that of the previous year, when the industry was experiencing a financial winter.

Retail and consumer products led by USD 623 million in PE/VC investments across five deals, topped by the ADIA bet on Reliance Retail Venture.

The real estate industry came in second, garnering USD 601 million over six transactions. According to the data, there were 17 exits for USD 1.3 billion in October, compared to USD 1.6 billion across 15 agreements a year ago.

The month raised a total of USD 2.4 billion, compared to USD 2.2 billion in October 2022 and USD 1.1 billion in September 2023, according to the study.