Panic-stricken investors, precariously placed portfolios, plummeting growth and promoters reluctant to cut deals at low prices—2008 saw Indian private equity (PE)/venture capital (VC) players grappling with storms on all fronts. The year saw overall PE/VC investments plummet 41% to reach $11.2 billion, against the $18.9 billion record high of 2007, according to a report by Four-S and Indian Venture Capital Association (IVCA). The number of transactions also dropped to 344 from 382 in 2007. Although the first six months of the year witnessed strong resilience, by the second half, the tremors from the US mortgage crisis had begun taking a toll on the Indian market.
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Graphics by Ahmed Raza Khan and Sandeep Bhatnagar / Mint