India, which happens to be the world's second-fastest growing economy and a global outsourcing hub, has seen private equity funding more than double in 2006 as cash-rich investors from the US and Europe eye a major chunk of the booming market. | |
| The total investments by private equity players have soared to $5.4 billion in the first nine months of 2006 compared to $2.2 billion in the whole of last year, global consulting firm PricewaterhouseCoopers (PwC) said in a study. |
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| As many as 246 deals have taken place so far in 2006 as against 169 in the whole of 2005, it added. The largest deal was the $900-million buyout by Kohlberg Kravis Roberts and Co, one of the largest PE funds in the US, for 85 per cent in Flextronics Software. |
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| Singaporean firm Temasek bought 10 per cent stake in Tata Teleservices for $360 million, Farallon invested $143 million in Indiabulls Financial and Warburg Pincus acquired 27 per cent stake in Lemon Tree Hotels, PwC said. |
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| The steady inflow of investments in India is attributed to the growing consumer spending, which has lead to emergence of high demand and a fast growing market. Besides, the recognition of India as a high-quality, low-cost production and R&D destination has also lured PE investors to the country. |
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| However, as compared to the traditional seed or growth stage funding that venture capitalists provide in other markets such as the US and Europe, investments in India have mostly been for late-stage funding and private investments in public enterprises, PwC said. |
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