MoneyTree™ India Q1 2017

PE investments

PE investments

  • The first quarter of the year recorded investments worth 6.8 billion USD in 130 deals, a 31% increase in value terms but a 34% decrease in deal volume compared to Q4 2016, which saw investments worth 5.2 billion USD in 196 deals.
  • The value of deals in this quarter has grown by 61% as compared to Q1 2016 where investments stood at 4.2 billion USD in 214 deals.

PE investments by industry

PE investments by Industry

  • The Information technology & IT-enabled services (IT & ITeS) sector reclaimed the top spot this quarter, with 66 deals worth approximately 3.3 billion USD.
  • The Telecom sector slipped to the second position in Q1 2017, attracting 1 billion USD in 2 deals. This was a 38% decrease in deal value compared to Q4 2016.

PE exits

PE exits

  • PE exits in the Q1 2017 were 72% higher in value than the previous quarter. In all, there were 53 deals worth 3.2 billion USD. In Q4 2016, the total exits were worth approximately 1.8 billion USD in 68 deals.
  • With 9 exit deals worth 1.1 billion USD, the IT & ITeS sector emerged at the top, followed by BFSI and Healthcare & life sciences with exits worth approximately 683 million USD in 11 deals and 497 million USD in 10 deals, respectively.

In terms of deal activity, the first quarter saw the IT & ITeS space continue to account for a large share of overall deal value despite a drop in volume. Although the quarter witnessed large investments in Indian eCommerce players such as Flipkart, Ola and Paytm, for the most part, the segment saw funds drying up due to the rationalisation of investments and start-up valuations. However, the rise of India-focused technology venture funds, the government’s structural reforms such as the Goods and Services Tax (GST) and the recently announced digital measures in Budget 2017 are likely to accelerate deal activity in the segment.

Sandeep Ladda
Leader, Technology
PwC India

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