MoneyTree™ India Q3 2015

Private equity (PE) investments in India witnessed the best nine months since 2007, with overall investments attracting US$13.8 billion across 535 deals. At the current pace, 2015 is well on course to becoming the best year for PE investments, surpassing the US$14.7 billion that the country saw across 533 deals  in full year 2007 (the highest to date).

In Q3 total investment was US$6.0 billion across 159 deals, which was again a record—the best quarter in the history of Indian PE. This record was made possible by sustained interest in e-commerce within the information technology (IT) and IT-enabled services (ITeS) sector, which alone saw US$3.6 billion of investments across 112 deals.

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Total private equity investments – Q3 2015

Investments by industry – Q3 2015

Interesting observations from this report:

The technology sector has once again emerged as the leader in terms of value and volume of investments, with e-commerce leading the pack. More than 3.5 billion USD was raised in this quarter, which is more than double the amount in the same period of the previous year. Several VCs raised new funds over the last few months, which led to faster deployment and boosted early-stage deals. In terms of segments, hyperlocal and mobile VAS companies saw significant traction.

Sandeep Ladda, Technology Sector Leader, PwC India

India’s young population is hungry for data access anytime, anywhere and at affordable price points. Companies that enable this will attract investments, as the potential to monetize such a connected customer base holds a lot of promise. PE investments are likely in companies innovating with newer technologies, service solutions and support infrastructure such as towers.

Arpita Pal AgarwalTelecom Industry Leader, PwC India

The spurt in new investments in renewable energy projects and service providers is driven by supportive state and national government policies, and a robust flow of new tenders for solar power projects. We expect to see further overseas investment in successful renewable energy developers, and in services for grid integration, storage, and O&M.

Kameshwara RaoEnergy Industry Leader, PwC India