MoneyTree™ India Q3 2017

PE investments

PE investments

  • The third quarter of the year recorded investments worth 6 billion USD in 127 deals, a 5% decrease in value terms and 22% decline in deal volume compared to Q2 2017, which saw investments worth 6.3 billion USD in 163 deals.
  • The value of deals in this quarter has grown by 73% as compared to Q3 2016 where investments stood at 3.4 billion USD in 170 deals.

PE investments by industry

PE investments by Industry

  • The Information technology & IT-enabled services (IT & ITeS) sector retained its firm grip on the top spot this quarter, with 73 deals worth approximately 3.2 billion USD.
  • IT & ITeS and FMCG were the only two sectors to show an upward trend in deal value compared to the previous quarter. The latter, which received no investments in Q2 ’17, attracted a remarkable 213 million USD in this quarter.

PE exits

PE exits

  • PE exits in Q3 ’17 saw a 6% decrease in the value of PE exits compared to the last quarter. In all, there were 44 deals worth around 2.7 billion USD in comparison to 66 deals worth around 2.9 billion USD in the previous quarter.
  • In Q3 ’17, IT & ITeS was again the top sector for PE exits, with a total of 11 deals worth around 1.3 billion USD. BFSI and Energy took up the second and third positions respectively, with exits worth around 597 million USD in 7 deals and 486 million USD in 2 deals, respectively.

Despite a dip in PE investments across sectors, the technology sector saw an upward trend in Q3 2017 compared to the previous quarter. The IT & ITeS industry continued to account for a large share of overall deal value despite a fall in volumes, as funding was mainly concentrated in leading companies that are now relatively established in their respective sectors. Although investors have become selective in their investments, the digital space, comprising the cloud, artificial intelligence and robotics, will attract a lot of attention going forward. At a time when the Indian IT sector is focusing on reskilling its existing workforce in order to adapt to the technological disruptions, home-grown start-ups are driving innovation in the industry by collaborating with global software giants to build niche solutions for the Indian market.

Sandeep Ladda
Leader, Technology
PwC India

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Private Equity and Deals Leader, PwC India
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Sandeep Ladda
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