Skip to main content

PE-VC investments in 2020 cross $39-B to create a "hat trick" of all time highs

Press Release: 

Private Equity - Venture Capital (PE-VC) firms, shrugged off the pandemic induced blues, to invest a record $39.2 Billion in Indian companies (across 814 deals) in 2020, shows data from Venture Intelligence - a research service focused on private company financials, transactions, and their valuations. The $17.3 Billion* invested by US-headquartered private equity and other global sovereign wealth funds in Reliance Industries Limited (RIL) Group firms - including in the telecom-focused holding company Jio Platforms ($9.9 Billion), Reliance Retail ($6.4 Billion), and Reliance Digital Fibre Infrastructure Trust ($1 Billion) - accounted for 44% of the total PE-VC investment value in 2020. (*This figure excludes the $10.2 Billion in strategic investments by Silicon Valley tech giants Google and Facebook in Jio Platforms). On the back of the RIL deals, PE-VC investments in 2020 grew 6.6% over the $36.3 Billion (across 1012 deals) invested in 2019 and helped create a "hat trick" (third continuous years) of record-high investments in the country. (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate). 

PE-VC investments in the final quarter of 2020 saw a healthy growth of 37% ($11.1 Billion across 211 deals) - on the back of mega investments in Reliance Retail and Reliance Digital Fibre Infrastructure Trust - over Q3'20 (which saw $8.1 Billion across 194 deals) and 24% compared to the same period last year ($9.0 Billion across 252 deals).


Apart from RIL Group deals, the top investments in 2020 included the acquisition of container glass packaging manufacturer, Piramal Glass, by Blackstone ($1 Billion), and the $603 million investment in online food ordering firm Zomato by various global private equity investors led by Tiger Global and Kora Management.


Venture Capital* type investments however fell 13% in value (and 16% by volume) in 2020 ($10.7 Billion across 694 deals) compared to last year ($12.5 Billion in 832 deals). The final quarter of the year, which saw 185 VC-type investments, while still lower than that in Q4'19 (206), provided scope for optimism with an 11% sequential increase (166 deals). (*For the purpose of this analysis, Venture Capital includes Seed to Series F investments in companies less than ten years old as well as those in late-stage tech companies.)

By Industry

Led by Jio and Reliance Digital Fibre Infrastructure Trust, Telecom accounted for $11.2 Billion of the investment pie during 2020. Bharti Airtel’s data center focused subsidiary Nxtra Data and smartphone manufacturer Lava International, chipped in, raising $235 million and $90 million, respectively.


IT & ITeS companies were the next favorite destination for investors during 2020, attracting $7.5 Billion. This included a slew of big-ticket investments in established Unicorns (Zomato, Oyo Rooms, Swiggy) as well as 8 new Tech Unicorns created during the year (including Dream11, Zenoti, Unacademy, Postman, Nykaa, Glance InMobi, Dailyhunt, and Pine Labs). Investments in the tech sector however fell 39% year-on-year from the $12.4 Billion in 2019.

Other Highlights

"The accelerated adoption of Digital Technologies by both consumers and enterprises attracted investors to 'TMT' (Telecom Media and Technology) companies, including in sectors like Edtech, E-Commerce and Financial Services," noted Arun Natarajan, Founder, Venture Intelligence. "Geo-Political compulsions, which led to marked slowing down of investments from Chinese investors in private Indian companies, was another key ecosystem altering feature of 2020," he added.

The bounce back in PE-VC investment activity was markedly concentrated on the two ends of the spectrum: large ticket deals (of $100 million and more) and Early Stage deals on the other, the Venture Intelligence analysis showed. Early Stage investments in Q4'20 were up 48% compared to the low in Q2, to set a seven quarter high. 


The second half of 2020 saw 35 PE-VC investments of over $100 million - after slowing down to 25 such deals in the first half. Such Big Ticket investments were targeted, apart from the TMT Unicorns, at infrastructure-related sectors and distressed assets.


On the flip side, minority growth capital investments (of less than $100 million) witnessed a steady fall through the year, to touch a a eight year low of 41 deals in Q4'20. 


"While it was heartening to witnesses a quick bounce back in overall PE-VC investments in 2020, accompanied by a boom in the public and commodity markets, there are several imponderables - from the changes in politico-economy in the US, to the threat of a 2nd wave of the Covid virus, to the efficiency of the vaccine roll-out - that could impact investment trends during the new year," Natarajan 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 2020 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

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

Ambit Corporate Finance topped the Venture 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 Industries   by Brookfield Asset Management  and the IFC and I Squared Capital-backed   Cube Highways' acquisition of Delhi-Agra Toll Road from Reliance Infrastructu

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 voted   the  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

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

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 Invest