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Indian Private Equity Gathers Pace, Deals Worth Over $14B Struck In Jan-Sept 2015

Accel India, cash, startups, fund of funds
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Ever since the new Modi Government took charge, India has persistently been marching ahead to reform its economy. To further strengthen the fact, here are some fascinating figures from a Quarterly Deal Report for the quarter ended September 2015.

The research, done by VCCEdge, the financial research platform of the VCCircle Network, highlights on the deals in the private equity, merger & acquisition and public offerings space.

As per the report, Private equity inflow of $14.24 billion in the first 9 months of 2015 is 32% higher than the previous high of $10.74 billion seen during the first nine months of 2008. Compared to the $8.3 billion invested during the same period in 2014, the inflow so far in 2015 is up a staggering 72%.

Angel and seed investments increased from $30 million to $94 million between Q3 CY2014 and Q3 CY2015. Deal volume went up 2.16x to 166 deals from 77 deals during the same period.

Furthermore, venture capital funding saw an upswing with 114 deals in the quarter as against 91 deals in Q3 CY2014. Deal value shot up to $1.42 billion.

Investments of at least $4.7 billion, spread across 342 deals, were made in Q3 CY2015 alone; an increase of 53% in deal volume and 56% in deal value when compared to deal-making in Q3 CY2014.

Exits on the other hand saw a lackluster performance, dipping by a half from 73 deals to 37 deals between Q3 CY2014 and Q3 CY2015.  Deal value dipped even further, falling over 62% from $1.29 billion to $487 million during the same period.

M&A deals struck during the quarter were recorded at 233 deals worth $6.79 billion. Compared to Q3 CY2014, deal volume declined 9% while deal value increased by a healthy 31%.

Equity capital markets remained supportive, helping 28 companies raise over $447 million in public offerings during Q3 CY2015, marginally (3%) lower than the $462 million raised during Q3 CY2014. Deal Volume, however, went up 22% from 23 offerings to 28 offerings between the two quarters.

Deal-making hit an all-time high with 928 deals being recorded during the nine-month period, surpassing the deal volume witnessed in any previous year in the history of Indian private equity.


Senior Writer

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