Deals in India: Mid-year review and outlook for 2021

04 August, 2021

Deal activity crosses USD 40.7 billion with 710 transactions in H1* of CY 2021: PwC India Report

PE activity in H1* 2021 was at an all-time high at USD 26.3 billion, 19% and 25% higher compared to H2 2020 and H1 2020 respectively.

Wednesday, 4 August 2021 – Despite the impact of the second wave of COVID-19 in India, deal activity in 2021 nearly retained momentum with the previous year. H1 of CY 2021 (1 Jan - 15 Jun period) recorded deal activity worth around USD 40.7 billion over 710 transactions, a 2% increase from H2 2020 in terms of value as per the PwC India report titled, “Deals in India: Mid-year review and outlook for 2021 – Resilience and Recovery.

PE activity in H1* 2021 was at an all-time high at USD 26.3 billion, 19% and 25% higher compared to H2 2020 and H1 2020 respectively. The surge in deal activity was fuelled by billion-dollar buyouts and numerous large fundraising rounds by start-ups, boosting many of them into the unicorn club. PE investors are also shifting their focus towards sectors such as technology and healthcare which show stronger potential for growth.

Discussing the deal performance in 2021 thus far, Dinesh Arora, Partner & Leader – Deals, PwC India, said, “Key themes emerging in 2021 due to the uncertainty of current times are ‒ a growing divergence in asset valuations, the acceleration of deals in digital and technology, and increasing attention toward environmental, social and governance (ESG) matters. Policy and credit measures announced by the Government to revive the economy along with a stable banking system, have resulted in the growth of positive sentiments within the investor community.”

Mid-year review of deals in India – A snapshot

  • Outbound deals: H1* 2021 was marked by the dominance of billion-dollar outbound deals, with the largest being Adani Green’s acquisition of SB Energy India for USD 3.5 billion, followed by Wipro’s acquisition of UK-based Capco at USD 1.45 billion. Excluding these billion-dollar deals, outbound activity amounted to USD 385 million across 26 deals.
  • M&A deals: The M&A deals space continues to be dominated by domestic deals with activity worth USD 6.2 billion being recorded in H1* 2021 and consolidation continues to be a standout trend.
  • PE exits: PE exits increased exponentially in H1* 2021 at 5.4 times the exit value of H2 2020. Strategic sales accounted for 58% of the exit value in H1* 2021 mainly due to two billion-dollar exits(Partners Group and the Canada Pension Plan Investment Board exited from GlobalLogic, and Abraaj Group and Alibaba exited from BigBasket). The PE exit boom can be attributed to the fulfilling of pent-up demand from the previous year, increasing M&A activity in the start-up ecosystem, focusing on consolidation in the technology sector with improved liquidity and the recent rebound and remarkable performance of the Indian stock market.
  • New unicorns: Stricter foreign direct investment (FDI) norms have provided an impetus to India-based start-ups and helped them to grow and leverage the market. The COVID-19 pandemic has accelerated the adoption of digital technology across sectors and Indian start-ups are establishing and strengthening their presence in the new normal. The technology sector dominated the PE investments space with 16 start-ups entering the unicorn club in 2021 compared to nine in 2020. EdTech is the emergent sector as major players like Byju’s and UpGrad continue to raise funds.
  • Stressed assets: The pandemic significantly impacted the resolution of stressed assets cases and led to operational challenges for parties involved in insolvency proceedings. Furthermore, the suspension of new proceedings under the IBC for almost a year slowed the resolution process. However, IBC activity picked up in May‒June 2021, with insolvency issues of the two large accounts of Jet Airways and Videocon Industries Limited were reportedly resolved in June 2021 by the National Company Law Tribunal (NCLT).

Globally as well, the record levels of deal-making, both in terms of deal volumes and values, continued from late 2020 into the first six months of 2021. According to the PwC Global M&A Industry Trends: 2021 Mid-year Update, the volume of deals was roughly the same across Asia-Pacific, EMEA and the Americas, although deal value was more heavily weighted towards the Americas, a similar trend to 2020.


Notes to the editor:

*For the sake of this analysis, the H1 period considered is 1 January to 15 June, 2021.

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 155 countries with over 284,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see for further details.  

© 2021 PwC. All rights reserved

Contact us

Nandini Chatterjee

Nandini Chatterjee

Chief Communication Officer, PwC India

Tel: +91 124 4620661

Follow us