BackMega deals power PE investments in 2017 to all-time high, says report
Private equity firms invested about $17.6 billion in Indian companies in the first nine months of 2017, sailing past the previous high of $17.3 billion in 2015, says Venture Intelligence
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New Delhi: Private equity investments have hit an all-time high this year with deals worth of $17.6 billion in the first nine months, largely driven by big-ticket transactions, says a report.
According to Venture Intelligence data, private equity firms invested about $17.6 billion in Indian companies in first nine months of 2017, sailing past the previous high of $17.3 billion in 2015. The year has already recorded as many as 21 investments over $200 million in size, in addition to 15 deals between $100-200 million, the report said.
The mega deals have been dominated by four sectors—Internet and mobile; infrastructure, IT services and BPO and BFSI (Banking, Financial Services and Insurance). SoftBank’s mega bets on Internet and mobile companies account for 24% of the total investment pie. According to the report, over $4 billion of investment value—24% of the total—has been committed by Japan-based SoftBank. Its investments included $250 million in budget hotel aggregator Oyo, $1.4 billion in mobile wallet leader Paytm and $2.5 billion in e-commerce leader Flipkart.
The report further said PE firms invested about $5.7 billion across 106 deals during July-September 2017, second highest after the March quarter that saw $6.4 billion investment across 163 transactions. The September quarter recorded as many as 13 investments above $100 million compared to 10 in the same period last year.
SoftBank’s $2.5 billion investment in Flipkart was the largest during the September quarter, the next three being accounted for by BFSI companies. Some of the major PE transactions in July-September were Carlyle’s $300 million in SBI Cards; the $260 million raised by RBL Bank and the $240 million buyout of investor services firm Karvy Computershare by General Atlantic.
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