Private equity investments in the first half of this year fell by almost 39% in value to $2.8 billion compared with the same period a year ago, according a Thomson Reuters data released on Tuesday. The deal volume, however, rose 22% to 165 transactions during the period on the back of heightened deal activity on the Internet and computer software segments, in continuation of the investment trend seen in 2017 as well.
India has been a hub of private equity transactions. The first half of 2014 saw 169 deals worth nearly $2.53 billion. The January to June period of 2015 saw 231 deals worth about $6.9 billion, while the same period in 2016 saw 134 transactions to the tune of nearly $2.3 billion.
Investors are optimistic that things will get better in the remaining months of the year, particularly as more exits are expected to happen on the back of strategic interest from Japan, Korea, and China.
“We will see a mix of investment across value chain, like early stage and late stage. We will also see some strategic investments, especially from China, Japan, and Korea,” says Anil Joshi, founder and managing partner at Unicorn India Ventures, an investment firm. “All these countries are showing interest, hence we will have a mix of investment.” He, however, cautions that sentiments may go up and down till the next Lok Sabha elections.
In the meantime, One 97 Communications—which runs Paytm, Future Enterprises, Policybazaar, Zomato, and Krishna Institute of Medical Sciences—topped the deal charts this year, raising $445 million, $250 million, $200.2 million, $150 million, and $130 million, respectively.