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Thirty-nine private-equity and venture-capital investments worth $886 million took place in India in July 2016, registering a decline of 58 per cent compared with the corresponding period last year, says a report.
According to the EY report, the decline in both value as well as volume terms was mainly due to the drop in number of early-stage and large-sized deals.
In July 2015, there were 71 PE/VC deals worth $2.1 billion.
Exits
Meanwhile, exits grew significantly to $1.8 billion in July this year from $550 million in July 2015. “After the record-breaking investments amidst the hyperactive e-commerce and other early-stage deal activity in 2015, exits are the big story in 2016,” said EY Partner and Leader for PE Mayank Rastogi.
Rastogi further noted: “We have had some very large strategic exits and highly successful PE-backed IPOs, and for the first time, exits are more than 50 per cent of the investments so far during the year — all of which should bode well for the Indian PE/VC ecosystem.”
Early-stage investments
Meanwhile, start-up and early-stage investments recorded the second lowest number of deals in last 24 months — 19 deals compared with 50 deals in July 2015.
There were six deals of $50 million and above, aggregating $484 million in July 2016, compared with nine deals aggregating $1.6 billion in July 2015, the EY report added.
From a sector perspective, real estate and financial services were the largest contributors, accounting for 43 per cent of deal-value and 41 per cent of deal-volume.
Also, e-commerce recorded some improvement with deals worth $100 million (supported by $61-million fund raise by OYO Rooms) after remaining below $80 million over the past three months.
According to the report, more than half of the deal-value came from larger deals of $50 million and above, which included Fairfax’s buyout of 51-per cent stake in Privi Organics for $55 million and CDC’s investment of $149 million in India Infoline Finance for a 15-per cent stake, the largest deal in July this year.
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