In first nine months, January-September, of 2018 the Private Equity (PE) investments has fallen down to US $14.60 billion from lat year's $15.60 billion of same period, according to Grant Thornton's latest PE Dealtracker report.

The decline is a result of macroeconomic concerns, market volatility and valuations of companies, said the report. Besides these factors, private equity investors are also turning cautious due to falling prices of rupee against the US dollar and touching its all-time low amid an investors exodus from the emerging markets.

During the January-September period of 2018, a total of 621 PE deals worth $14.60 billion were reported as compared with $15.60 billion in the same period last year. On the other side, the July-September quarter saw a total of 217 PE deals worth $5.2 billion, an increase of 41% in terms of the number of deals, despite a drop in value by 28%, compared with the same period last year, the report added.

Telecom, e-commerce, manufacturing, energy, agriculture banking and IT sectors led the deal activity, capturing 85% of the total deal value. Startups had a share of 46% of the total investment volumes. Financial technology also attracted significant attention from investors with 20 deals, followed by retail and health tech segments. “The environment for private equity market has been sluggish due to concerns like the economy, market volatility and valuations, among other things,” said Prashant Mehra, Partner, Grant Thornton India LLP, in the report.

Some of the other top deals during the third quarter include ADIA and TPG Capital's investment in UPL Corp, KKR's investment in REEL, Udaan's series C funding for USD 225 million, the report said adding that Curefit raising USD 120 million marks the biggest ever fund raise by an Indian healthcare startup.

In September quarter of last year, the private equity & venture capital (PE/VC) investments in Indian startup ecosystem reached a whopping $8.7 billion, according to a report by research company Ernst and Young (EY). The figure at that time was significantly higher than what was recorded for the same period of year 2016.

In total, Indian startups witnessed a total of nine $200-million-plus deals in the July-September 2017 quarter, with SoftBank’s $2.5 billion investment in Indian e-commerce giant Flipkart being the largest PE investment ever recorded in the Indian subcontinent.

An another report by research firm Venture Intelligence, the first nine months (July-September) of 2017 had saw private equity firms investing about a whopping US $17.6 billion in Indian firms, a figure which is already past the previous record of USD 17.3 billion in the year 2015.

Source - Financial Express

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