MoneyTreeTM India Q2 2014

Indian investments in the second quarter of 2014 continued their good show, with PE firms investing a total of 2.83 billion USD across 95 deals, an increase of 7% in value despite a 20% drop in volume.

With a new government in place, India is all set to attract a greater share of investments. The deal pipelines of leading PE houses seem quite robust, with a number of large corporate houses willing to let go of non-core assets and de-lever. Another area begin watched closely is the exits of investments by PE houses to other PE houses. If valuations stay strong we should see more PE deals in the coming quarters.

This quarterly study of private equity investment activity is based on data provided by Venture Intelligence and serves as a reliable source of current and recent trends in PE/VC funding. In addition to aggregate information, the report provides data cuts by industry, region, stage of development and exit.

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Total PE investments Q2 2014

Q2 2014 Investments by industry

Interesting observations from this report:

“On the back of a strong and stable government whose one-point agenda is growth, we have witnessed yet another strong quarter of PE investments in the IT & ITeS sector. The online services subsector within IT & ITeS continues to attract the highest level of investment, as this subsector witnesses significant growth opportunities and burgeoning competition. Bengaluru, as a destination, continues to attract large PE investments and the NCR continues to climb the ladder in this space. A significant part of the entire investment in this quarter was in growth-stage deals.”

Sandeep Ladda, Technology Industry Leader, PwC India

“The regulatory regime and changes as far as they concern the financial services area have been largely positive and encouraging. Thus, the sector is looking forward to continued and significant growth. Quite naturally with positive long-term prospects for large as well as niche participants, investors have been taking a keen interest in exploring opportunities. To a varying degree, almost all segments of the FS sector need capital for continued growth. It is therefore good that the investor universe is taking interest.”

Manoj Kashyap, Financial Services Industry Leader, PwC India

“The average ticket size of deals in the healthcare sector in Q2 '14 was 52.36 million USD which is a quantum jump over the average ticket size of 8.45 million USD in the previous quarter and 14.21 million USD in Q2 '13. This is representative of the increased appetite of the sector to absorb larger investments. Increased deal activity in the secondary transactions segment was the main contributor to the jump in volumes thus providing good exit opportunities to existing investors.”

Dr. Rana Mehta, Healthcare Industry Leader, PwC India