Corporate India announced private equity and venture capital investments worth USD 2.3 billion in April, taking the year-to-date deal tally to USD 6.3 billion, says a report. According to assurance, tax, and advisory firm Grant Thornton, there were 79 private equity and venture capital (PE/VC) transactions worth USD 2.3 billion in April this year, while in the corresponding period last year there were 85 such transactions worth USD 2.9 billion.
“Absence of large ticket investments resulted in a 22 percent decline in the value of PE/VC transactions in April 2018 as compared to the USD 2.9 billion transaction value reported in April 2017,” said Pankaj Chopda, Director, Grant Thornton India LLP. In the January to April period, there were 284 PE/VC transactions worth USD 6.3 billion, up 21 percent over last year when the figure stood at USD 5.2 billion. Real estate, start-up, banking, energy, and pharma sectors led the deal activity, capturing 77 percent of the total deal values.
While the start-up sector dominated the deal volumes with a 58 percent share. “PE/VCs continued to invest in start-ups, banking and financial services, real estate, pharma and healthcare and energy and natural resources,” Chopda said. He further said that though opportunities in these sectors will remain of interest, the PE/VCs are likely to follow a cautious approach given the number of portfolio exits that are outstanding and the upcoming national polls and their impact on policies.
The month was dominated by investments in start-ups, which contributed to 62 percent of total investment volumes garnering USD 536 million. The fintech segment attracted significant investor attention with 12 deals, followed by the travel and logistics space with eight investments, while the retail space witnessed a big ticket investment worth USD 400 million with Softbank’s continued interest in Indian start-ups, the report said.