Private equity deals in India slumped 63 percent to only $1.4 billion in the second quarter of 2020, as per data compiled by Refinitiv. This number was $3.8 billion in the first quarter of 2020. In the same time period 2019, the total amount of private equity investments stood at $4.1 billion. Compared to 2019, the slump was more than 65 percent.
In terms of the number of deals, the report said that Q2 2020 saw 161 deals, compared to 177 deals in the same quarter 2019 and 178 deals in the previous quarter. This quarter also did not see any exits, that is no investor sold off its stake and exited the management of a company. In the last quarter, there was one exit valued at $1.4 billion.
Internet specific businesses saw a drop of 76 percent in terms of the amount invested, computer software dropped 46 percent and financial services dropped 26 percent year on year (YoY). On the other hand, medical and health sectors saw a jump of 260 percent and consumer related sectors saw a jump of 95 percent in terms of the amount invested.
Further details on sector specific data show, internet specific businesses have raised $386 million over 71 deals, computer software businesses have raised $356 million through 46 deals. Compared to 2019, internet businesses raised $1.6 billion through 77 deals and computer software businesses have raised $670 million through 40 deals. Medical sector has raised $250 million compared to only $70 million in 2019.
Among the biggest private equity investments reported from the first half of 2020 are OYO Rooms which raised more than $800 million from Softbank Vision Fund and few other investors. SBI General Insurance raised $439 million from Warburg Pincus and Premji Invest, Byju’s, an edtech startup based out of Bengaluru raised $200 million from Tiger Global and General Atlantic. Among other major startups both Swiggy and Zomato raised close to $155 million from multiple investors.
Source: MoneyControl
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