Ecommerce drives tech deals to $11.5 bn in 2014

According to ‘Grant Thornton – Indian Private Equity & Venture Capital Association (IVCA)’ report, India’s technology sector recorded investments of $11.5 billion from around 400 deals, including mergers and acquisitions (M&A) and private equity (PE), in 2014.

The report says this was led by big-ticket e-commerce PE investments, along with large cross-border acquisitions by leading IT majors. The trend has continued into 2015, with large IT and BPO players looking at cross-border acquisitions to consolidate service offerings and expand geographic coverage.

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E-commerce has shown significant growth in both volume and value of deals. It accounted for 30% of the total value of deals in the technology sector in 2012, which rose to 75% in 2014.

Harish HV, Partner, Grant Thornton, says the presence of a complete life cycle of investors — from angel to seed to VC to PE to Public — has contributed to this trend. “We can safely say that the ecosystem for startups is in place and that, combined with entrepreneurship, has resulted in explosive growth of startups and deal activity”, Harish added.

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