Private equity inflows into the country dipped 51 per cent to USD 2.4 billion in January-March 2016 in 301 deals compared to the preceding quarter, indicating a lean period in deal activity, says a report.
This was 47 per cent lower than inflows of USD 4.5 billion in January-March 2015 quarter, the report by investment banking firm Merisis Advisors said.
The top PE deals in the quarter included Naspers infusing a further USD 250 million in ibibo Group and Snapdeal raising USD 200 million from Canada's Ontario Teachers' Pension Plan and others among others.
Besides, angel and seed investments grew in volume but slowed down in value terms.
"Deal volume for angel/seed investments was up 37 per cent to 189 deals in the said quarter from 138 deals a year ago. Deal value however slipped 32 per cent to USD 58 million during the same period," it said.
Also, exits saw a lackluster performance dipping to a 15-quarter low in value terms. Deal value slipped by 70 per cent from USD 1.7 billion in the fourth quarter FY2014-15 to USD 508 million in January-March FY16.
Deal volume trimmed by more than half from 89 deals to 39 deals during the same period, it said.
M&A deals spiked in value, majorly due to the top 3 strategic acquisitions which contributed to more than 55 per cent of the total M&A deal value, the report said.
These include Quikr's acquisition of CommonFloor.Com for USD 200 million and Kedaara Capital and Partners Group purchasing mortgage arm of Jaipur-based lender Au Financiers for Rs 950 crore (USD 140 million) among others.
"Due to this M&A's in India showed a rise of 88 per cent to USD 8.9 billion in Q4 FY16, as compared to a year ago. Deal volume slipped to 230 in Q4 FY16, as compared to 248 a year ago," the report said.
