MoneyTree™ India Q1 2016

  • Q1 of 2016 saw investments worth 3.10 billion USD in 160 deals. As compared to Q4 ’15 when deal value was 3.78 billion USD in 184 deals, the volume dropped by 15%, while value fell by 18%. 
  • Q1 ’15 saw 211 deals worth 3.16 billion USD. The average deal size in Q1 ’16 was 19.4 million USD. 
  • The IT & ITeS sector attracted 1.26 billion USD in 92 deals, which is 15% higher than the 1.09 billion USD in 109 deals it attracted in the previous quarter and 18% higher than the 1.07 billion USD in 114 deals it received in Q1 ’15. 
  • The BFSI sector attracted 430 million USD in 11 deals, which is a 56% drop as compared to Q4 ’15 (980 million USD in 15 deals) and a 54% drop as compared to Q1 ’15 (934 million USD in 19 deals). 
  • It saw exits worth 2.59 billion USD in 35 deals, which is 50% higher than the previous quarter, which saw exits worth 1.67 billion USD in 59 deals. This is a 29% surge as compared to Q1 ’15 (1.94 billion USD in 68 deals). 
  • With over 50% of the total deal value, the manufacturing sector emerged as the top sector in exits, with 1.27 billion USD in four deals. IT & ITeS saw exits worth 403 million USD in 11 deals.

"Indian macros continue to gain health and this is likely to spur M&A and funding activities over the next few months - however we expect this to be sectoral. Financial Services and Healthcare continue to see significant deal momentum, as have some of the services segments. Capital Goods and Manufacturing sectors are seeing greater activity though most of this is owed to extraction of good operating assets from the not so well performing conglomerates. There has been a definite slowdown in the e-commerce/digital and consumer internet deals and the next few months are likely to see some consolidation in the sector."

 

  - Sanjeev Krishan
    Leader, Private Equity, PwC India

"The Indian IT-ITeS industry is in an optimistic mood, with the government planning a number of major technology-centric initiatives, including some wide-ranging infrastructure investments. The 'Digital India' programme and ongoing efforts on 'Smart Cities' are driving spending on software and IT services. Meanwhile, IT budgets in sectors such as banking and financial services, retail, telecom and logistics continue to remain robust. We believe the expected growth in the sector will provide more opportunities for investors."

- Sandeep Ladda
Leader, Technology, PwC India