MoneyTree™ India Q3 2014

MoneyTree™ India Q3 2014

PE investments

  • Private equity investments in India have recorded an uninterrupted five-quarter upswing with 3.01 billion USD in the third quarter of the year across 103 deals, a moderate increase of 4% in value and a 3% drop in volume.
  • The investments have doubled as compared to the same quarter last year, despite a 9% reduction in the volume.

PE investments by industry

  • The IT & ITeS sector attracted 1.64 billion USD in 56 deals which is more than half of the total investments.
  • In the healthcare and life sciences sector the total investment value was 292 million USD in 11 deals, a 45% decline as compared to the previous quarter.

PE exits

  • The exit activity in the third quarter of 2014 has dropped by 18%, with a total value of 1.11 billion USD in 31 deals, as compared to the the previous quarter which saw 1.35 billion USD worth investment in 56 deals.
  • With a single deal worth 234 million USD, the telecom sector dominated the exit space in this quarter followed by the manufacturing sector (229 million USD in two deals).

PE in IT and ITeS sector

  • The sector attracted 1.64 billion USD in 56 deals, a two-fold jump over the previous quarter (746 million USD in 47 deals) and more than a 250% rise as compared to Q3 2013 (618 million USD in 41 deals).
  • The average deal size in this sector has surged in this quarter, from 17.3 million USD in the prior quarter to 29.3 million USD in this quarter.
 

“The overall market sentiment is positive with a strong and clear intent from the government on liberalisation and easing doing business in India. This is further aided by favourable macros with declining global commodity prices and declining domestic inflation. Combined with the enhanced interest in public markets, we also anticipate global strategic investors to look at India with heightened interest, in effect providing multiple routes for both capital raising and exits.”

- Sanjeev Krishan
Private Equity Leader, PwC India

 

“India's overall retail opportunity is substantial, and coupled with favoured demographics (young population, rising standards of living and upwardly mobile middle class) and growing internet user base, strong growth in e-commerce market is expected. Growth has been driven by advancements in technology – increasing adoption of devices like smartphones and tablets, and easy access to the internet has led to increase in online consumer base. The e-commerce businesses will continue to attract investor interest driven by strong growth prospects of the market.”

- Sandeep Ladda
Technology Leader, PwC India