India’s private equity and venture capital investments dipped to 3-year low of USD 343 million in February, an EY report said today. In value terms, PE/VC investments declined by over 70 per cent compared to February last year, while deal volume fell by 50 per cent.
“Investment numbers took a dive in February due to lower deal volumes and decline in large deals,” said Mayank Rastogi, Partner and Leader for PE at EY. “There was no deal above USD 100 million in February which last happened 18 months ago – however there are a bunch of large deals in the making which should make up for the decline in near-term,” he said.
Last month again saw exits outpacing investments in value terms reaffirming the sustainability of PE industry in India. Collectively, in January and February 2017, the investments totalled USD 1.5 billion and exits USD 1.4 billion.
Deal value and volume declined across sectors with only Financial Services recording a modest performance of USD 136 million across 4 deals. Technology recorded the highest number of deals (8), while RHC (real estate, hospitality & construction) recorded just one deal, lowest in two years. There were three e-commerce deals worth USD 75 million.
Though February recorded a poor show, there were many large deals in the making including that of Brookfield (Hiranandani and Reliance Towers business), GIC investment in DLF commercial property business, Blackstone’s investment in K Raheja’s rental assets, Ola’s fund raise of almost USD 330 million by Softbank, EY said.