"Deal making is tough in peak uncertainty" said Vishal Mahadevia of Warburg Pincus, enumerating the macro economic concerns and global geo-political tension, which makes both sellers as well as the buyers cautious.

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On the flip side, the dry powder with the investor community will give them the ability to provide growth capital for the companies when fund raising is challenging due to interest rate hike and volatile equity markets. Warburg Pincus finds the financial services space in a golden period, attractive for investments as it remains bullish on India investments.

Manish Kejriwal of Kedaara Capital said he sees a challenging year for the new age companies. Focus has shifted to operational performance for the digital companies and there is more discipline in the startup universe.

There is a likelihood of unviable, cash burning digital companies to shut down, Kejriwal added.

Winners will be the high-performing funds that are capable of providing more benefits to grow investee companies beyond capital, he said.

Also Read | Big Deal: 2023 will be an active year for M&A, says Cyril Shroff

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