PE players have become extremely active of late. The exuberance is here to stay for some time.
AT A TIME WHEN FRESH INVESTMENTS are down to a trickle — new investment proposals in the 3rd quarter of 2017 were at the lowest levels since the September 2004 quarter — venture capital (VC) and private equity (PE) investors are going full throttle to make a point that India is a compelling investment case. In 2017, PE/VC investments touched $26.8 billion, a 37 percent increase from the previous record in 2015, according to EY’s PE Deal Tracker. On an year-on-year basis, the rise comes to 65 percent; annual PE investments have risen 3.5 times over the last five years, an impressive show by all means.
“The year 2017 was a watershed for India's PE/VC sector. Investments grew to a record high. Deals became larger and more complex. Growth capital deals accounted for the highest activity and investment,” says Vivek Soni, Partner and Leader for PE Advisory, EY. Four growth capital deals worth more than $1 billion each made headlines as start-ups launched during the final years of the last decade came of age and looked for money to fund their next stage of growth. Three involved Softbank —Flipkart ($2.5 billion), PayTM ($1.4 billion) and ANI Technologies or Ola Cabs ($1.1 billion, along with Tencent). Apart from this, there was a $1.39 billion investment in DLF Cyber City Developers Ltd. by GIC (a big chunk of the proceeds will be used to reduce the developer’s huge debt that is weighing on its financial performance).
Even exits rose as PE players took advantage of buoyant capital markets to book profit. The year saw exits worth $13 billion, nearly double the $6.67 billion seen in 2016.
PE funds have set an exciting pace for investments in India. But will it sustain? Broad trends such as dried-up bank lending, economic recovery, buoyant capital markets, fast growth in emerging sectors and the ongoing deleveraging by companies signal a bigger role for them in the coming years.
Esta historia es de la edición April 08, 2018 de Business Today.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición April 08, 2018 de Business Today.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS