MoneyTree™ India Q2 2014

MoneyTree™ India Q2 2014

PE investments

  • The investments in Q2 2014 have continued their good run with PE firms investing 2.83 billion USD across 95 deals, a growth of 7% in value despite a 20% drop in volume.
  • However, as compared to Q2 2013, the value of deals has dropped by a whopping 41% and 23% by volume.

PE investments by industry

  • The BFSI sector attracted the highest investment during the Q2 2014, totalling 977 million USD in just eight deals, an increase of more than 10 times from the previous quarter and a 14% surge from the same period last year.
  • The IT & ITeS sector has been pushed to the second position with investments worth 728 million USD in 42 deals this quarter, a 22% decline as compared to the previous quarter in value, but a 52% rise from Q2 2013.

PE exits

  • The exit activity in Q2 2014 more than tripled in value and doubled in volume. Total exits were worth 1.06 billion USD in this quarter in 37 deals as compared 300 million USD from 18 deals in Q1 2014.
  • A majority of the exits in Q2 2014 came from the healthcare & life sciences and manufacturing sectors, which together contributed almost 80% to the total exit value and 27% to the total volume.

PE in IT and ITeS sector

  • Q2 2014 witnessed investments worth 728 million USD in 42 deals in the IT & ITeS sector. Though it is a 22% decline as compared to the previous quarter in value terms, it represents a 52% rise as against Q2 2013.
  • The average deal size in this sector dropped from 19.2 million USD in Q1 2014 to 17.3 million USD in Q2 2014. In Q2 2013, the average deal size in this sector was 11.4 million USD.

“The optimism in private equity investing is visible with the strong inflow of investments, which we hope to continue in the next few quarters. Within technology, the online services segment plays the role of a differentiator as some of the companies in that segment outpace other sectors with astounding growth prospects. The recent large deals in Flipkart and Snapdeal can be seen as a beginning of this trend.”

- Sandeep Ladda
Technology Leader, PwC India