VCCEdge reports boost in private equity inflows into India

VCCEdge, the financial database and research platform of the VCCircle Network, which is India's leading online financial data and information services group, owned by News Corp, on Tuesday released its quarterly deal report for the quarter ended June 2015.

Private equity investments in Q2 2015, excluding real estate, were recorded at3.85 billion dollars across 262 deals, which is an increase of 29 percent in deal volume and 43 percent in deal value, compared to Q2 2014.

The average deal value jumped 19 percent to 20.48 million dollars in the latest period from 17.14 million dollars in 2014. Big-ticket deals (at least 100 million dollars) constituted 71 percent of the total private equity capital invested in Q2 2015.

The first half of 2015 registered 513 PE deals valued at 8.3 billion dollar from 4.9 billion dollar investments in 403 deals during the same period last year translating into an increase of 27 percent in deal volume and 70 percent in deal value. This has been primarily due to a rise in early-stage and venture capital investments in technology companies.

Private Equity exits in the first half of 2015 dipped by 3 percent in terms of deal volume. 447 Merger and Acquisition deals registered in the first half of 2015 rose 6 percent from 421 deals for the same period last year.

Indian companies raised 306 million dollar across 11 offerings in Q2 2015, representing an increase of 47 percent in deal value as against 208 million dollar capital raised in Q2 2014.

Angel and seed investments rose three-fold in deal value to 58 million dollar in the second quarter of 2015 from 20 million dollar in Q2 2014. Deal volume spiked 94 percent to 140 deals in Q2 2015 from 72 deals in the previous year.

Venture capital funding saw an upswing with 89 deals in the Q2 2015 from 73 deals in Q2 2014, registering a growth of 22 percent. Deal value also shot up to 725 million dollar in the Q2 2015, from 424 million dollar the same quarter previous year.

Founder of VCCircle Network, Sahad P V, said that seed and early stage investments have boosted private equity inflows into India.

"The story so far this year is how seed and early stage investment story have boosted private equity inflows into India as investors hunt for early bets. Meanwhile, late-stage private equity continues to be challenged with fewer deals than last year. M&A activity, though subdued particularly for inbound deals, is expected to pick up in the second half of the year with corporate earnings showing signs of improvement," he said.

Meanwhile, Senior Vice President of Strategy of News Corp, Raju Narisetti, said that VCCEdge's unique database provides rich data that goes beyond surveys and sentiment.

"While there has been tremendous interest and attention to the Indian start-up, VC and PE ecosystem, VCCEdge's unique database allows us to provide, on a quarterly basis, rich data that goes beyond surveys and sentiment, to provide real data to make meaningful conclusions about investments in and into India," he said.