The month of May recorded investments worth $5.4 billion across 58 deals, with $4.6 billion invested in Jio Platforms, according to a report by IVCA-EY.
IVCA (Indian Private Equity and Venture Capital Association), which is India’s apex association representing the interests of India’s private equity & venture capital industry, together with Ernst & Young has released this report, which is a monthly PE roundup.
If not for Jio Platforms, PE/VC investments would have recorded a fourth straight month of decline, recording just US$791 million in investments, a 72% y-o-y decline and 15% lower than April 2020, the report said.
According to the report, the month of May 2020 saw almost double of Private equity and venture capital investments — on year on year basis.
It is to be noted that in the first 5 months of 2020 there have been only US$1.5 billion worth of fundraises, 91% of which were raised in the first two months i.e. — January & February (which is pre Lockdown), compared to US$4.6 billion raised in the same period last year.
Investments in May 2020 were 92% higher compared to May 2019 (US$2.8 billion) and 5.8 times the value recorded in April 2020 (US$935 million). However, 85% of the investments in May 2020 were due to the Jio Platforms PE deals aggregating US$4.6 billion, said the IVCA-EY report.
From a sector point of view, telecom sector (US$4.6 billion across four deals) emerged as the top sector due to Jio Platforms, followed by life sciences sector (US$354 million across four deals) which includes Carlyle’s buyout of 74% stake in SeQuent Scientific Limited for US$210 million and financial services (US$309 million across 16 deals).