July 22, 2022
Maharashtra, Karnataka, and Delhi’s startups generated 146,000, 103,000 jobs, and 87,643 jobs respectively
The startups raised about US$ 63 billion between 2016 and 2020
Startup investments increased more than three-fold in 2021 from US$ 11 billion in 2020
The Indian government has undertaken 52 regulatory reforms to reduce compliance issues
India Inc witnessed around 1,149 deals, at a combined valuation of US$ 104.3 billion in the first half of 2022 despite global uncertainties, according to a report by Grant Thronton, an accounting firm.
The report claims that overall deal volumes have undergone a 34% increase, with deal values doubling with a 143% growth, compared to the same period last year.
Also, India saw US$ 6 billion from 17 IPOs, which has been the highest value raised in the first six months.
M&A and PEs
In terms of M&A deal activity, the total values have registered double growth, compared to the first half of 2021. Three deals alone from HDFC Bank, Adani Group, and Larsen & Toubro Infotech (LTI) accounted for 86% of the total M&A deal values in the first half of 2022.
The M&A space witnessed strong growth in the first half of this year with 284 deals, with a 27% increase registered over the same period last year.
While Private Equities drove most of the deal volumes by accounting for 3/4th of the total number, deal values on the other hand were mostly led by M&A activities, which accounted for 76% of all deal values.
Investments from private equity and venture capital firms saw record volumes and values with 865 deals at US$ 25.1 billion, in the first half of 2022.
During this period, 76% of all deal activity was led by startups, IT, and e-commerce companies. The rest was followed by the retail, pharma, and education sectors. The startup industry saw the most investment at US$ 5.1 billion across 550 deals and has witnessed a 69% growth in deal values.
The banking and financial sector, in terms of overall deal value, had the highest contribution at 53%, followed by IT and manufacturing sectors.
Experts said that the overall deal sentiment for 2022 is expected to be robust, driven by factors such as the government’s infrastructure spending, supply-side responses, and other key fiscal measures.
Despite geopolitical concerns, prominent investment organizations remained active with their funding.