The month also displayed the potential of the IT sector with Uniphore raising its largest fund to date.
Private equity (PE) investment values recorded a 1.6x increase in August, compared to the same period last year, with deal values being driven by eight high-value investments of over $100 million each, contributing 72% to the total PE investment value, said the Grant Thornton monthly PE dealtracker.
“However, compared to July 2019, August witnessed a significant downtrend in the deal activity with 2.6x fall in the investment value with a marginal 3% fall in volumes,” the report said.
Driven by GIC’s $622-million investment in IRB Infrastructure’s BOT assets, the infrastructure sector dominated the PE investment values with 29% share. This deal is also the biggest infrastructure investment till date by a single sovereign wealth fund.
The start-up sector continued to occupy the larger share of volumes with 68%, dominated by investments in fintech companies, followed by data analytics and AI, retail and discovery platforms.
“This demonstrates a continued uptrend and consistently attracted investors amid the prevailing economic and political crisis. The month also displayed the potential of the IT sector with Uniphore raising its largest fund to date. It also marked one of the most substantial funding rounds in the conversational AI sector,” it said.
Pankaj Chopda, director at Grant Thornton India, said while policy actions and missteps have played an important role in shaping the global economic events and their impact on the market sentiment, active policy stimulus will be the need of the hour to support deal activity in the face of adverse macroeconomic indicators.