PE, VC investments into India touch all-time high

Private equity (PE) and venture capital (VC) investments into India touched an all-time high of US$36.7 billion in the first eight months of 2019, according to a report by the Indian Private Equity and Venture Capital Association and consulting firm EY

September 10, 2019

The total Indian private equity and venture capital investment could potentially be in the range of US$48-50 billion by the end of 2019

In August, PE/VC investment value rose 39% to US$4.4 billion across 82 deals, compared to 59 deals worth US$3.9 billion in August 2018

Infrastructure witnessed the highest investments, followed by real estate and financial services, amid government measures in the sectors

August saw 11 exits worth US$691 million, 60 per cent lower compared to the value of exits recorded in August 2018 at US$1.6 billion

Private equity (PE) and venture capital (VC) investments into India touched an all-time high of US$36.7 billion in the first eight months of 2019,Private equity (PE) and venture capital (VC) investments into India touched an all-time high of US$36.7 billion in the first eight months of 2019, surpassing the previous record of US$36.5 billion in 2018, according to a report by the Indian Private Equity and Venture Capital Association and consulting firm EY.

“[…]Given the deal momentum in various sectors, by the end of 2019, the total Indian private equity and venture capital investment could potentially be in the range of $48-50 billion,” said Vivek Soni, partner and national leader, private equity services, EY. For August, PE/VC investment value rose 39% to US$4.4 billion across 82 deals, compared to 59 deals worth US$3.9 billion in the corresponding month the previous year.

This, according to EY, was on the back of 16 large deals (of value greater than $100 million) and strong investment activity in infrastructure and real estate, which accounted for 35% of the total private equity and venture capital investments in August, compared to 23% in August 2018.

Infrastructure witnessed the highest investments, followed by real estate and financial services. Five out of the 16 largest deals in August were in infrastructure and real estate sectors, aggregating $1.6 billion. The largest deal during the month was the investment of $631 million by Singapore’s sovereign wealth fund GIC in IRB Infrastructure Developers’ road platform, followed by Blackstone’s buyout of Coffee Day’s Global Village Tech Park for $400 million.

August saw 11 exits worth US$691 million, 60% lower compared to the value of exits recorded in August 2018 at US$1.6 billion.

Despite growth slowdown, tight liquidity, market sentiment and currency depreciation globally, the rise in investments in India is testament to the fact that initiatives like Startup India, Digital India, Make in India, Skill India, e-governance, etc, have borne fruit.