Apr-Jun qtr sees PE investments of USD 6.3 bn: Report

Private equity investment activity in India remained buoyant in the April-June quarter with investments worth USD 6.3 billion, a 51 per cent rise in deal value over a year-ago period, says a report.
According to the PwC MoneyTree India report, a quarterly study of PE investment activity based on data by Venture Intelligence, the April-June period saw 155 PE deals worth USD 6.3 billion, taking the first half deal tally for this year to USD 13.6 billion -- highest PE activity in a decade.
As per the report, the PE appetite continued to be strong with late-stage investments accounting for almost 57 per cent of the investment value at USD 3.6 billion this quarter, followed by buyout deals at USD 0.9 billion.

"Investor confidence in India's growth story continues to be strong with both foreign as well as domestic players tapping into opportunities here. However, the Goods and Services Tax (GST) may impact the investment landscape in near term, as investors assess the scenario and proceed more carefully," PwC India Leader, Private Equity Sanjeev Krishan said.
Sectorwise, technology space led with over 40 per cent of the total investment value this quarter with investments worth USD 2.7 billion, a 93 per cent rise over the same period last year.
Technology space recorded the largest deal -- Softbank's investment of USD 1.4 billion in One97 Communications.

"Despite the slowdown in growth in the Indian technology sector and in the midst of layoffs and US visa issues, technology continued to be an important investment theme in the second quarter with IT and ITes accounting for a large share of overall deal value," PwC India Global TMT Tax Leader and India Technology Sector Leader Sandeep Ladda said.

Ladda further said as transactions continue to move online, new areas such as FinTech and the hyperlocal and travel segments are set to benefit in the long term.
Regionally, Mumbai gained an edge over NCR (national capital region) in the April-June quarter of this year, with total investments worth around USD 2.3 billion in 39 deals.

With a 70 per cent drop in PE investment value as compared to the last quarter, Bengaluru slid down to the third spot, the report added.
In terms of PE exits, the April-June quarter saw 61 deals worth around USD 2.8 billion n comparison to 58 deals worth around USD 3.2 billion in the previous quarter.