India signs more than 1100 deals worth US$ 104 bn in H1 2022: Report

Overall deal volumes have undergone a 34% increase, and deal values have more than doubled with a 143% growth, compared to the first half (H1) last year

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. 

Industries

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.

Way forward

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.

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