MoneyTree™ India Q1 2015

MoneyTree™ India Q1 2015

PE investments

  • The first quarter of 2015 saw 130 private equity deals worth 2.77 billion USD, and was the best performing first quarter since 2011.
  • Despite a 10% drop in volume in Q1 ’15, the value surged by 15% as compared to the same period in 2014, which saw 144 deals worth 2.42 billion USD.

PE investments by industry

  • The BFSI sector led the PE investments this quarter, attracting 891 million USD in 14 deals, up 83% from the previous quarter and over eight times from the same period last year.
  • Coming in a close second, the IT & ITeS sector attracted 836 million USD investment in 71 deals, almost a 68% drop from the previous quarter’s 2.65 billion USD and a 14% drop from last year’s performance of 969 million USD.

PE exits

  • As compared to the same period last year, exit activity for the quarter was three times higher, at 1.14 billion USD in 40 deals against 470 million USD of exit value (27 deals) in Q1 ’14, but marginally lower than the previous quarter’s 1.17 billion USD in 39 deals.
  • The BFSI sector saw 472 million USD worth of exits in seven deals while the IT & ITeS sector saw exits worth 232 million USD.

PE in IT and ITeS sector

  • The first quarter of the year was not so great for the IT & ITeS sector as the total investment during the period declined by 68% to 836 million USD in 71 deals as compared to the previous quarter’s 2.65 billion USD in 62 deals.
  • The average deal size in this sector is down to 11.8 million this quarter as compared to 42.7 million USD in the previous quarter.
 

“Recent IMF and World Bank projections that the Indian economy will grow faster than China this year and in the next few years, is expected to boost investor sentiment and should result in higher allocations for India. This will however, need to be backed by an improving domestic corporate earnings and favourable macros like a declining interest rate and continued low inflation environment.”

- Sanjeev Krishan
Leader, Private Equity, PwC India

 

“India continues to consolidate its position as the global hub for the IT/ITeS industry, by developing capabilities around traditional and emerging markets, expanding delivery capabilities and increasing focus on high value services for product development and technology incubation. The new government's focus on technology enabled growth through the ‘Digital India’ and ‘Make in India’ campaigns has significantly boosted overall market prospects and investor sentiment. Growing demand for IT from the small and medium-sized businesses (SMB) segment, especially in emerging markets, has also fuelled growth.”

- Sandeep Ladda
Leader, Technology, PwC India