With almost nine months down on the calendar of 2017, transaction research firm Venture Intelligence decided to evaluate the progress of private equity investments recorded in the country in the year so far and unearthed some interesting facts and figures.
The firm found out that, the first nine months of 2017 has seen private equity firms investing about a whopping USD 17.6 billion in Indian firms, a figure which is already past the previous record of USD 17.3 billion in the year 2015.
Divulging details about the sizes of the deals witnessed, the firm revealed that, in the nine months that have passed since the year starting, India has seen as many as 21 investments over USD 200 million in addition to 15 deals between USD 100 million and USD 200 million.
One of the most interesting facts highlighted by Venture Intelligence is that, Japanese multinational telecommunications and Internet corporation, SoftBank has alone contributed over USD 4 billion of the investment value or 24 per cent of the total amount in the year gone by so far.
The investments which helped the Japanese major achieve this feat include a USD 2.5 billion investment in Indian e-commerce giant, Flipkart; a USD 1.4 billion investment in Indian mobile wallet giant, Paytm; and a USD 250 million investment in Indian-origin hotel room aggregator website, Oyo.
Interestingly, at 402, the number of deals witnessed so far in the year are 23 per cent lower than what was recorded during the same period last year.
Coming to the latest quarter, July-September, about 106 private equity deals took place this time garnering about USD 5.7 billion. This means, the quarter was the second best quarter in the year gone by so far, only behind Jan–Mar 2017, which saw 163 deals going through that churned out a whopping USD 6.4 billion.
In what could be considered as an encouraging figure for the Indian startup scene, the latest quarter saw 13 investments above USD 100 million going through as compared to 10 in the same period last year.
While SoftBank’s USD 2.5 billion investment in Flipkart was the largest investment that took place in the quarter, the other investments that made headlines were made for by BFSI companies- General Atlantic’s USD 240 million buyout of investor services firm Karvy Computershare; Carlyle’s USD 300 million into SBI Cards and the USD 260 million raised by RBL Bank.
Last year saw the Indian startup industry going through a sluggish period when it came to the number of investment deals taking place. The Indian startup industry, which was once the apple of every investor’s eye saw experienced investors tightening heir pursue strings and taking much longer than before concluding transactions. But, the latest figures made available by Venture Intelligence show that the industry is bouncing back and how.
This development was first reported in MoneyControl.