2014 was a bumper year for VC/PE transactions, easily topping the numbers seen in the last 3-4 years.
The year witnessed 559 recorded transactions, which was a jump of almost 30% over the previous year. Amount invested jumped even more, up almost 60% to cross $13B, shows data by research firm India business Reports (www.indiabusinessreports.com).
Average deal size increases
In 2014, deal details were disclosed for 379 transactions. Almost one-third of deals done prefer not to disclose details. In other words, the $13.1B of investment is from these deals, giving an average deal size of $34.6m. This was 21% more than the average deal size for 2013. Average deal size has trended higher in the last 2-3 years.
VC/PE deals in India in 2014
Source: India Business Reports
www.indiabusinessreports.com
Manufacturing, construction down
The slowdown in core sectors in the last 3-4 years is clearly reflected in the funding pattern. The share of PE money target at manufacturing and construction has come down sharply from an aggregate of around 40% to barely above 20%. Services – comprising IT, e-commerce, healthcare, travel and tourism – is where PE investors have increased their bets, much in line with the character of Indian economy. The new PM Narendra Modi's ‘Make in India' needs to do more get a buy-in from PE funds.
Broad Sectoral Split
Source: www.indiabusinessreports.com
