India Inc's Jan-Apr PE/VC deal tally reaches 6.3 b: Report

Corporate India announced private equity and venture capital investments worth $2.3 billion in April, taking the year-to-date deal tally to $6.3 billion, says a report.

According to assurance, tax and advisory firm Grant Thornton, there were 79 private equity and venture capital (PE/VC) transactions worth $2.3 billion in April this year, while in the corresponding period last year there were 85 such transactions worth $2.9 billion.

"Absence of large ticket investments resulted in a 22% decline in the value of PE/VC transactions in April 2018 as compared to the $2.9 billion transaction value reported in April 2017," said Pankaj Chopda, Director, Grant Thornton India LLP.

In the January to April period, there were 284 PE/VC transactions worth $6.3 billion, up 21% over last year when the figure stood at $5.2 billion.

Real estate, start up, banking, energy and pharma sectors led the deal activity, capturing 77% of the total deal values. While, the start-up sector dominated the deal volumes with a 58% share.

"PE/VCs continued to invest in start-ups, banking and financial services, real estate, pharma and healthcare and energy and natural resources," Chopda said.

He further said that though opportunities in these sectors will remain of interest, the PE/VCs are likely to follow a cautious approach given the number of portfolio exits that are outstanding and the upcoming national polls and their impact on policies.

The month was dominated by investments in start-ups, which contributed to 62% of total investment volumes garnering $536 million.

The fintech segment attracted significant investor attention with 12 deals, followed by the travel and logistics space with eight investments, while the retail space witnessed a big ticket investment worth $400 million with Softbank’s continued interest in Indian start-ups, the report said.