PE/VC investments in Apr touch $2.4 b on large deals: EY

PE/VC investments in Apr touch $2.4 b on large deals: EY


Private equity and venture capital investments in April were up 23% at $2.4 billion, backed by large deals in sectors like ecommerce and life sciences, says an EY report.

According to EY, there were 69 PE/VC deals in April worth $2,370.09 million, while the corresponding month of 2017 had registered 66 such deals worth $1,920.32 million.

"PE/VC deal activity in India continues to gather steam and become more robust. Both investments as well as exits are on an upward trend," said Vivek Soni, Partner and Leader for Private Equity Advisory, EY.

Exits also recorded a significant growth of 47% in terms of value during the same period, primarily on account of a single large exit by Actis worth $692 million.

Soni said the recently announced majority acquisition of Flipkart by Walmart is expected to re-rate the Indian startup sector.

"We believe it will inject new found enthusiasm and energy into the early to mid-stage investing eco-system and inspire many more entrepreneurs," he said.

The next 4-5 years are expected to be the golden age for the Indian PE/VC sector, provided there is stability in the political as well as policy front, he said.

The largest investment in April 2018 saw Softbank invest $400 million for a 21% stake in Paytm Mall.

This was followed by couple of deals in the life sciences sector - $350 million investment in Mankind Pharma by ChrysCapital GIC and CPPIB for a 10% stake, and Apax Partner's $350 million acquisition of Healthium Medtech, a maker of surgical equipment.