2017 saw $26 bn of PE/VC investments in India, the highest in a decade

The year 2017 saw a strong trend in buyouts and $26 billion in PE/VC inflows into India. Top 15 deals accounted for 50 per cent of deal value in 2017 against 30 per cent in 2016. 2017 also saw a revival of consumer technology deals, scaling of domestic funds, diversification of fund sources and a strengthening exit story, reveals a recent analysis by Bain & Company. Here are some key findings of the report.

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Key takeaways
 

• 2017 witnessed $26bn of PE/VC investment in India, the highest in a decade and a 60% increase from 2016

• Mega deals drove bulk of investment — top 15 deals accounted for 50% of deal value vs 30% in 2016

• Consumer technology and BFSI were the largest drivers of investment (accounting for 50% of deal value)

• Big ticket consumer technology deals re-emerged in 2017 (eg, Flipkart, Paytm, Ola Cabs) with average deal size of $45mn vs $7mn in 2016

• Domestic capital continued to scale along with Alternative Investment Funds in India which raised $5bn in 2017, >2x of the 2016 total

• 20% of deal value was driven by sovereign wealth funds and pension funds, with significant participation of funds from Canada and West Asia

• PE exits in 2017 saw 60% increase in value from 2016 to reach $15.7bn, driven by consumer technology and telecom

• Top 10 exits (eg, Bharti Airtel, Flipkart, GlobalLogic) accounted for 40% of deal value