MoneyTree™ India Q2 2015

  • Q2 ’15 has seen 4.29 billion USD worth investments in 135 deals, which is 35% higher than Q1 ’15 and 36% higher than the year-ago period.
  • Together, Q1 and Q2 made the first half of the year the best ever in the history of PE investment in India, totalling at 7.47 billion USD.
  • The IT & ITeS sector attracted 1.77 billion USD in 85 deals, up 76% from the previous quarter and almost 2.5 times as compared to the corresponding period in the previous year.
  • The healthcare and life sciences sector has made a strong comeback by attracting investments worth 827 million USD in 11 deals, more than double when compared to the previous quarter and up 46% compared to the same period in the previous year.
  • Q2 2015 saw the largest chunk of exits, amounting to 3.63 billion USD in 50 deals. This is more than twice the previous quarter and three times the same period last year.
  • The IT sector saw 1.93 billion USD in 13 exits, while the BFSI sector saw exits worth 437 million USD in just four deals. Strategic sales continued to be the preferred exit route, with 1.55 billion USD worth of exits in 11 deals, while public market sales witnessed exits worth 977 million USD.
  • IT investments surged to 1.77 billion USD in 83 deals, which is almost double of what these investments attracted in the previous quarter (890 million USD), and over two and a half times better than the same period last year (736 million USD).
  • The average deal size in this quarter was 21.29 million USD, more than double the amount (9.78 million USD) in the previous quarter.

“We expect the buoyancy exhibited in H1 2015 to continue in the second half of the year—in the short term, deal activity in e-commerce, healthcare, IT and life sciences is expected to continue; the core and infrastructure sector may see some transactions too. While the Reserve Bank of India has maintained rates for now, it is expected that we would move towards lower rates over a period of time, and this should help. We expect a lot of secondary transactions during H2, as PEs attempt to exit their existing investments and use the opportunity to raise new funds.”


  - Sanjeev Krishan
    Leader, Private Equity, PwC India

“This trend is expected to continue with more firms investing in newer technologies. Smart machines are expected to usher in a new era of digital transformation with wearables, advanced robotics, 3D printing, virtual personal assistants and smart advisors evolving rapidly. Customer experience is the key to success in the growth of internet businesses and we expect to see significant product investment from companies in improving the customer experience and consumer engagement.”

- Sandeep Ladda
Leader, Technology, PwC India