Skip to main content

2018 is Biggest Ever for PE Investments in India at $23.7 Billion

Q3’18 is the Biggest Quarter Ever at $9.2 B; up 60% YoY

Mega Deals Rule the Roost in Q3 with 12 investments worth over $200-M each, accounting for 65% of Investment Pie

Mega sized Private Equity investments in the July-September quarter have catapulted 2018 into the biggest year for PE investments in India, with the nine month total already matching the previous 12 month high recorded in 2017. According to data from Venture Intelligence (http://www.ventureintelligence.com), a research service focused on private company financials, transactions and their valuations, the total PE investments in the first nine months of 2018 touched $23.7 Billion (across 525 deals) – up 29% compared to the first nine months of 2017 (across 527 transactions). (Calendar 2017 was the biggest ever year for PE investments in India, recording $23.7 Billion across 704 deals).


Private Equity firms invested a record $9.2 Billion (across 154 deals) during the quarter ended September 2018 – up 60% compared to the $5.8 Billion (across 146 transactions) in the same period last year, Venture Intelligence data shows. The investment amount in Q3’18 was 11% higher than the immediate previous quarter (which had recorded the previous highest quarterly investments at $8.3 Billion across 191 transactions). Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate.

The latest quarter witnessed 22 PE investments worth $100 million or more (accounting for 79% of the total investment value during the period) compared to 13 such transactions in Q3’17. Of these, 12 were larger than $200 million each (by themselves accounting for 65% of the total value) - compared to just four such investments in the year ago period, the Venture Intelligence data shows. 

The biggest PE investment reported during Q3’18 was the $1.2 Billion equity investment by ADIA and TPG - for a combined stake of 22% - in UPL Limited (formerly United Phosphorus Limited). The funding will be used to finance the Mumbai-based, publicly listed UPL’s $4.2 Billion acquisition of US-based Arysta LifeScience Inc. This was followed by two $1 Billion investments: in hotel chain Oyo (led by SoftBank Vision Fund) and in Star Health Insurance (by WestBridge Capital, Madison India, Rare Enterprises and other investors).



By Industry

IT & ITeS companies accounted for 34% of the PE investment pie ($3.2 Billion across 80 deals), led by the Oyo - SoftBank deal and Berkshire Hathaway’s reported $360 million investment mobile wallet firm Paytm. Other large ticket IT & ITeS investments reported during the period include Temasek’s $225 million investment in Ola (via a secondary transaction) and a similar sized investment in B2B E-Commerce marketplace Udaan (by DST Global and Lightspeed Partners). The quarter witnessed a total of nine investments of $100 million or above in IT & ITeS companies, including in companies like Bookmyshow, ShareChat and Freshworks. 
In Financial Services, the Star Health Insurance deal was followed by Warburg Pincus’ additional $173 million investment in mutual fund registrar and transfer agent CAMS and the $100 million investment in NBFC, Five Star Business Credits (by TPG Capital and existing investors Sequoia Capital India, Morgan Stanley and Norwest).

“International investor interest in Indian Internet & Mobile companies has shot up dramatically post the Walmart-Flipkart deal,” remarked Arun Natarajan, Founder of Venture Intelligence. “At the same time, it is gratifying that investments in other industries - including in Manufacturing, Energy and Engineering companies – is also quite strong. This lends confidence that 2018 will set a significantly new high for PE investments in the country, even if the nervousness in the public markets and global events begin to affect private markets in Q4,” he added. 

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

Popular posts from this blog

VC Interview: Shailendra Singh of Sequoia Capital India

In a recent interview to Venture Intelligence, Shailendra Singh discussed some of the firm’s newer investments in the early stage segment including in the online payments space, the progress at a few existing portfolio companies and the active role the firm is playing in helping its portfolio companies scale and succeed in India and globally. Prior to joining the firm in 2006, Singh was a strategy consultant at Bain & Company in New York and before that, an entrepreneur in the digital media industry.

Venture Intelligence: How does Sequoia go about identifying potential early stage investments in India? Is there anything different you are doing today than, say, a couple of years back?

Shailendra Singh: There is a lot more focus on technology investing and early stage investing. In general, as you might remember a few years ago, we were doing primarily growth investing but in the past 18-odd months, we have had a very strong focus on early stage and that’s continuing. In terms of how…

KPMG Tops League Table for Financial Advisor to Private Equity Transactions in H1 2018

The transaction advisory unit of KPMG claimed the top position in the Venture Intelligence League Table for Transaction Advisor to Private Equity deals in the first half of 2018, advising deals worth $1.7 Billion. KPMG acted as the financial advisor to NHAI in the $1.5 Billion investment by Macquarie to operate 9 highway projects under the toll-operate-transfer (TOT) model. Ernst &  Young (which advised the $730 million asset sale by Indiabulls Real Estate to Blackstone) and Kotak (which advised the Vishal Megamart - Partners Group deal) accounted for the second and third spots respectively.
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
Arpwood Capital (which advised the $760 million investment by Temasek in the $2.1 Billion Schneider Electric buyout of L&;T Electrical and Automation business) …

"Leveraged stock purchase led Arvind Rao to go astray": Forbes India

Forbes India has an article on the series of events leading to the recent controversial exit of Arvind Rao, Co-founder & CEO of listed Mobile VAS firm OnMobile.

On November 23, 2010, Arvind Rao, the 53-year-old co-founder and CEO of OnMobile, bought approximately 6 lakh shares of his company from the open market, representing a little over 1 percent of the company’s total shares....At Rs 277 a share, he had to pony up nearly Rs 16.5 crore to acquire them....So he went ahead and borrowed money to buy the shares, thinking nothing of the interest it entailed or the fact that he’d need to put up nearly half his existing shareholding as collateral...OnMobile’s shares continued to fall from those levels, while Rao’s interest payments ballooned.

...Motivated by OnMobile’s growth all these years, he had never paid much attention to his salary, most of which went towards the monthly rental on his sea-facing apartment in Mumbai and his BMW 7-Series, both paid directly by the company. He reque…