Skip to main content

Jio deals help PE investments climb 12% in H1'20 to $18.8 B

Press Release

With Reliance Industries' communications unit Jio Platforms attracting 51% of the investment value, Private Equity-Venture Capital (PE-VC) investments in India rose 12% during the first 6 months of 2020 to $18.8 Billion (across 341 deals), shows data from Venture Intelligence, a research service focused on private company financials, transactions and their valuations. Investments totaling over $9.5 Billion in Jio by a troop of global private equity firms, following social media giant Facebook's $5.7 Billion mid April investment in the company, helped overall PE-VC investments better the $16.8 Billion (across 503 transactions) invested during the same period in 2019. (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate).  

Jio Platforms' $9.5 Billion Private Equity haul (excluding Facebook’s strategic investment) was led by Middle Eastern and American investors with KKR, Saudi Arabia's Public Investment Fund and Vista Equity Partners which invested $1.5 billion each, followed by Silver Lake Partners and Mubadala Investment which invested over a $1 Billion each. H1'20 witnessed 24 PE-VC investments worth $100 million or more, down from 37 such transactions in the same period last year. But for the Jio investments, overall PE-VC investments during H1 2020 would have fallen 45% compared to H1 2019, the Venture Intelligence analysis shows. 



At $4.1 Billion across 270 deals, Venture Capital* investments fell 11%  in value terms (and 31% in volume) compared to the same period in 2019 (which had witnessed $4.6 Billion across 393 transactions). Notably, VC investments shrunk 52% (in value terms) year-on-year to just $1 Billion in Q2'20. (*Venture Capital is defined as investments in startups less than 10 years old.)



By Industry

Led by Jio, Telecom accounted for $9.6 Billion of the investment pie in H1'20, with smartphone manufacturer Lava International chipping in with $90 million raised from Global Emerging Markets Group. 

IT & ITeS companies came in next, attracting $3 Billion - down 43% compared to the $5.3 Billion they had attracted in H1'19. The first two months of the year saw existing investors SoftBank and Naspers leading mega rounds for their Unicorn portfolio companies, including budget hotel aggregator Oyo Rooms and food delivery company Swiggy, respectively. With such deals becoming an almost distant memory in Q2'20 thanks to Covid, the $150 million round attracted by API (Application Programming Interface) development and testing company Postman and the new investment in EdTech company Byjus from the Mary Meeker led Bond Capital (announced at th fag end of the Q2) provided some scope for optimism. Apart from Postman, the first half of 2020 saw the minting of one more Indian Unicorn startup: cosmetics e-tailer Nykaa (which attracted about $25 million from Steadview Capital and other investors)

"The Coronavirus-related lockdowns and \the overall economic uncertainty had caused a large section of the PE-VC investment community to go into a pause mode - something reflected in the shrinking deal volumes," noted Arun Natarajan, Founder, Venture Intelligence. "Until there is better clarity on the still unfolding health crisis, most investors are likely to focus their energies on existing portfolio companies and be very selective in making new investments," 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.


(Venture Intelligence Subscribers will be mailed detailed reports of the PE-VC action during Q2'20 in the next few days.)

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…

Ambit tops League Table for Transaction Advisors to Private Equity deals in 2019

Ambit Corporate Finance topped theVenture Intelligence League Table for Transaction Advisor to Private Equity Transactions for the year 2019. Ambit advised PE deals worth $2.4 Billion (across 4 qualifying transactions) during the period. Citi ($1.1 Billion across 2 deals) and Avendus ($969 million across 12 deals) took the second and third spot. Edelweiss Financial Services ($758 million across 9 deals) and PwC ($708 million across 15 deals) completed the top five in 2019. 

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 Financial and Legal Advisory firms.
Ambit Corporate Finance advised the $1.9 Billion buyout of Pipeline Infrastructure from Reliance Industriesby Brookfield Asset Management and the IFC and I Squared Capital-backedCube Highways' acquisition of Delhi-Agra Toll Road from Reliance Infrastructure (Reliance ADAG). Citi advise…

PE Investments down by 36% in Q1'20

Press Release
Private Equity-Venture Capital (PE-VC) firms invested $5.9 Billion (across 164 deals) during the quarter ended March 2020 - 36% lower than the $9.2 Billion (across 249 transactions) during the same period last year, according to data from Venture Intelligence, a research service focused on private company financials, transactions and their valuations. The Q1'20 investments were also 37% lower compared to the immediate previous quarter (which had witnessed $9.4 Billion being invested across 227 transactions). (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate).
The latest quarter witnessed 14 PE-VC investments worth $100 million or more, down from the 20 such transactions in the same period last year. The largest PE-VC investment announced during Q1’20 was the $567 million takeover of power generation company RattanIndia Power by Goldman Sachs and Varde Partners. The second largest investment was SoftBank Vision Fund…

Inventus, Sixth Sense, Blume & Norwest win Apex'20 Venture Capital Awards

Inventus Capital Partners, Sixth Sense Ventures, Blume Ventures and Norwest Venture Partners were voted the top Venture Capital investors in India during 2019. The Venture Intelligence “Awards for Private Equity Excellence” (APEX) is dedicated to celebrating the best that the Indian Private Equity & Venture Capital industry has to offer. Other 2019 winners in the VC segment included Axilor Ventures which was votedthe Accelerator of the Year for the second year running, 3one4 Capital (VC Fund Raise of the Year) and Innoven Capital (Venture Debt firm of the Year).
The APEX Awardees are selected based on both Self Nomination by the participating PE-VC firms as well as "crowd sourced" nominations and voting from the Limited Partner, PE-VC and advisory communities. (The main criteria are Exit Track Record, New Fund Raises & Follow-on Funding Rounds for Portfolio Companies).


"It is an honour to be recognised by entrepreneurs and investors as India's No 1 startup a…

PE investments in 2018 crosses $33-B to set new all-time high

Big Ticket investments in consumer apps Swiggy & Byju’s dominates year-end activity, even as investments in Core Sectors slow down
Private Equity (PE) investments in India rose to their highest ever figure of $33.1 billion in 2018 (across 720 transactions), according to data from Venture Intelligence (http://www.ventureintelligence.com), a research service focused on private company financials, transactions and their valuations. While PE investments have already surpassed the previous high - $24.3 Billion across 734 deals in 2017 - in the first nine months of 2018, the mega investments in Consumer Internet & Mobile startups such as Swiggy and Byjus towards the year-end, helped the 2018 total vault by 36% year-on-year. (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate.) The year witnessed 81 PE investments worth $100 million or more (accounting for 77% of the total investment value during the period), compared to 47 such transac…