MoneyTree™ India Q4 2015

  • Q4 2015 saw investments worth 3.9 billion USD, a 40% drop as compared to the previous quarter and a 12% drop as compared to the year-ago period. 
  • The quarter saw 159 deals, while Q3 ’15 witnessed 203 deals  worth 6.6 billion USD, as opposed to 146 deals worth 4.5 billion USD in the Q4 2014. 
  • The IT & ITeS sector attracted 1.3 billion USD in 93 deals, a 67% drop as compared to the previous quarter and a 52% drop as compared to the year-ago period. 
  • BFSI attracted 910 million USD in 10 deals, almost three times higher than the previous quarter (311 million USD in eight deals) and 60% higher than the year-ago period (570 million USD in 12 deals). 
  • The media & entertainment sector received investments worth 414 million USD across just five deals. 
  • The shipping & logistics sector received 403 million USD in investments.
  • Across all four quarters, there was a record exit of 8.6 billion USD in 230 deals. This is an all-time record, surpassing the exits worth 6.3 billion USD in 2010. 
  • Q4 2015 saw exits worth 1.5 billion USD in 51 deals, a 12% drop from the previous quarter (1.8 billion USD in 51 deals), but recorded a 16% surge as compared to the year-ago period (1.3 billion USD in 54 deals). 
  • IT & ITeS emerged as the top sector in terms of exit value, with investments worth 598 million USD in 13 deals. 
  • Technology continues to be the most attractive sector for investors, with investments worth 1.26 billion USD across 93 deals. This is a 67% decline compared to the previous quarter and a 52% decline compared to the year-ago period. 
  • The overall average deal size fell to 13.6 million USD as compared to 31.67 million USD in the previous quarter. In addition, the average deal size of early-stage deals dipped to 3.4 million USD in this quarter. 

“The Indian government’s focus on making it easier for foreign investors to do business in India will help from a perception standpoint and needs to be backed by real reform. India’s macros are looking good, with the current account and fiscal deficit at acceptable levels, a relatively stable rupee, inflation at below 5% and, most importantly, a declining interest rate regime. This should encourage private investment as demand picks up. We believe financial services, technology and healthcare continue to see sustained activity in 2016, while e-commerce fundraising may become challenging this year at least in the near term."

  - Sanjeev Krishan
    Leader, Private Equity, PwC India

“In 2015, sectors such as banking, insurance and telecom saw the stabilisation of their business and opened up their technology spend over the year, thereby driving the growth of the Indian IT & ITeS industry.  The government revealed some new technology-centric initiatives last year—namely Digital India and Start Up India—to accelerate India’s plunge into the connected digital world.  The Start Up India initiative, launched in January 2016, aims to boost entrepreneurship in India and provides a wide range of incentives to startups. Budget 2016 has also provided a road map to this initiative."

- Sandeep Ladda
Leader, Technology, PwC India