MoneyTree™ India Q2 2015

Momentum in private equity (PE) continued in Q2 2015 with India seeing investments worth 4.3 billion USD, one of the strongest performances in several quarters. Beyond investments, it has been an impressive quarter for exits, which stood at 3.5 billion USD.

The technology sector contributed over 1.7 billion USD in investments, with e-commerce and e-services contributing the most significant component of technology PE investments, something that is unlikely to change in the near future.

This sudden spurt in activity has been aided mainly by a good number of secondary transactions, which is a healthy sign of a maturing PE market.

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Total private equity investments – Q2 2015

Investments by industry – Q2 2015

Interesting observations from this report:

We have seen yet another quarter of PE investments dominated by the IT & ITeS sector. E-commerce continues to be very attractive to the PE/VC community and a majority of the investments are in the growth and late stages (follow-on rounds) and predominantly in niche segments like travel, classifieds and furniture. E-commerce ancillary companies in logistics also raked in big money.

Sandeep Ladda, Technology Sector Leader, PwC India

While the appetite for quality large deals remains—as demonstrated by the Shriram City Union deal with Apax—the broader deals picture in BFSI remains a bit subdued. There is interest in the fin-tech segments such as payment processing, online marketplaces for new services/products and those kinds with interesting business models.

Bharti Gupta Ramola, Financial Services Leader, PwC India

There is enhanced interest in the laboratory diagnostics space. With a growth of over 20% CAGR, the sector is the fastest growing segment in the healthcare space. The large players have aggressive plans in the domestic as well as the international market. We expect robust deal activity in the space, catalysed by the fact that the leading players are going in for an IPO.

Rana Mehta, Healthcare Leader, PwC India