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
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.
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