PE investment shifts gear

By: | Published: September 15, 2018 4:07 AM

Private equity investors and venture capitalists invested $1.6 billion in India in August, the lowest in six months and a 71% drop compared to August of last year.

Private equity investors, DLF Cyber City, Flipkart, Warburg Pincus, Helion Ventures, Accel IndiaThe largest exit in August includes the 5-million part-exit from Ola by Helion Ventures, Accel India, Bessemer and others in a secondary sale to Temasek.

Private equity investors and venture capitalists invested $1.6 billion in India in August, the lowest in six months and a 71% drop compared to August of last year. There were 18 exits worth $830 million, according to EY’s Private Equity Monthly Deal Tracker.
In terms of investments, the significant difference is on account of two mega deals recorded in August 2017—Softbank’s $2.5 billion investment in Flipkart and GIC’s $1.4 billion investment in DLF Cyber City. In terms of deal volume, investment activity in August 2018 was on a par with deals recorded in August last year.

The largest exit in August includes the $225-million part-exit from Ola by Helion Ventures, Accel India, Bessemer and others in a secondary sale to Temasek. The other large exit during the month saw Warburg Pincus sell 8.3% stake in AU Small Finance Bank for $223 million in the open market.

In terms of stages of investment, buyouts led in terms of value of investments, with four deals worth $683 million, more than twice the investments received in August 2017. Expansion/growth deals, which otherwise are the front-runners in terms of investment value, recorded just $467 million in investments compared to $4.5 billion recorded in August 2017. Start-ups ranked at the top in terms of number of deals (29 deals).

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