Private equity investments during the July-September quarter of the current fiscal declined by 5% on a sequential basis to $3.24 billion, according to data released by research and analytic firm Venture Intelligence on Monday. The number of deals also declined to 125 during the period compared with 135 in the preceding quarter.
On a yearly basis, the decline in investments was to the tune of 50%.
Private equity investments in the first nine months of the current calendar year stood at $10.6 billion across 443 deals, 23% down compared with $13.8 billion across 594 deals in the same period in 2015.
The largest PE investment during the quarter was the $300 million raised by Paytm from Taiwan’s Mediatek, China’s Alibaba and venture capital firm SAIF Partners.
The second largest was Goldman Sachs’ $250-million investment in Essel Highways followed by $175 million raised by messenger firm Hike from China’s Tencent, Taiwan’s Foxconn and US-based Tiger Global. India Infoline Finance came next, raising $149 million from CDC Group, followed by TCNS Clothing, which received $140 million from TA Associates.
As for sectors, IT and ITeS companies accounted for 36% of the private equity investment pie in the September quarter, raising $1.15 billion across 65 transactions during the period, followed by the banking, financial services and insurance (BFSI) sector, which received $861 million.
As per the findings by the analytics firm, investments in BFSI have more than doubled following more than $100 million funding in India Infoline Finance, National Stock Exchange and Hero Fincorp.