2020: A Big Deal Year

PE and VCs deployed $47.5 billion in Indian companies while exits hit a five-year low at $6 billion

- POOJA SARKAR

The Indian private equity (PE) and venture capital (VC) ecosystem had a year like never before in 2020. According to data by VCCEdge and EY analysis, investments by these investors stood at $47.5 billion from January to December—a record year for investments compared to $47.3 billion for the same period in 2019.

Though the number looks rosy, one cannot escape that, of this, $17.298 billion was raised by Reliance Group’s various entities, especially its technology arm Jio Platforms Ltd [Reliance Industries is the owner of Network 18, the publisher of Forbes India]. The Group alone took home 36 percent of the total capital raised by companies in India. It was also the first time that any group globally managed to raise such a volume of capital during the pandemic.

This year’s largest cheque was signed by global PE firm KKR when it deployed $1.5 billion in Jio Platforms for acquiring a 2.32 percent stake. It also invested $754 million in Reliance Retail Ventures for a 1.28 percent stake. Other large investors who deployed in Reliance Group companies include Public Investment Fund of Saudi Arabia, Silver Lake Management, Mubadala Investment Company, Singapore’s sovereign fund GIC, among others.

If one looks at the Indian PE-VC ecosystem, one or two deals skew the data every year. In 2020, it is left with deals worth $37.33 billion, which looks lot less compared to last year. This includes real estate and infrastructure investments too.