PE/VC investments in Apr up by 23% at USD 2.4 bn on large deals: EY

Private equity and venture capital investments in April were up 23 per cent at USD 2.4 billion, backed by large deals in sectors like e-commerce and life sciences, says an EY report.

According to EY, there were 69 PE/VC deals in April worth USD 2,370.09 million, while the corresponding month of 2017 had registered 66 such deals worth USD 1,920.32 million.

"PE/VC deal activity in India continues to gather steam and become more robust. Both investments as well as exits are on an upward trend," said Vivek Soni, Partner and Leader for Private Equity Advisory, EY.

Exits also recorded a significant growth of 47 per cent in terms of value during the same period, primarily on account of a single large exit by Actis worth USD 692 million.

Soni said the recently announced majority acquisition of Flipkart by Walmart is expected to re-rate the Indian startup sector.

"We believe it will inject new found enthusiasm and energy into the early to mid-stage investing eco-system and inspire many more entrepreneurs," he said.

The next 4-5 years are expected to be the golden age for the Indian PE/VC sector, provided there is stability in the political as well as policy front, he said.

The largest investment in April 2018 saw Softbank invest USD 400 million for a 21 per cent stake in Paytm Mall.

This was followed by couple of deals in the life sciences sector - USD 350 million investment in Mankind Pharma by ChrysCapital GIC and CPPIB for a 10 per cent stake, and Apax Partner's USD 350 million acquisition of Healthium Medtech, a maker of surgical equipment.