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Wednesday, January 27, 2016

PE deal tally rises 30 pct to $16 bn in 2015: Grant Thornton

Private equity deal tally surged by 30 per cent to USD 16 billion through 1,000 deals in 2015, largely driven by the startup segment, which contributed 60 per cent of the total investment volume, says a report as per the PTI.

In 2014, there were 608 private equity transactions worth USD 12.37 billion.

According to assurance, tax and advisory firm Grant Thornton, 2015 witnessed PE activity at an all-time peak contributing more than 60 per cent of overall deal volume during the year and 34 per cent of overall deal values.

“With inflation in control and GDP growth being revised to now higher than anticipated, all necessary ingredients seem to be in place for growth in deal activity as well. The recent FDI norms and the much-awaited GST will perhaps be a game changer and will accelerate the deal activity from an inbound investment, domestic M&A and PE perspective,” Grant Thornton India partner Prashant Mehra said.

The substantial increase in volume was largely due to an impressive level of interest among private equity and venture capita investors in India’s startups, the report said, adding that a huge chunk of the total volume — over 600 investments — involved startups.

The year also witnessed evolved startups like Flipkart, Snapdeal, Olacabs and Paytm raising funds in excess of USD 500 million at huge valuations.

The year saw various investor classes like angel investors, angel networks, venture capitalists and some of the more established PE funds betting on the startup growth story.

In 2015, IT & ITeS sector witnessed 38 per cent growth year on year, thereby reaching the highest record in this segment.

This sector alone contributed 45 per cent of total investments with USD 7 billion in 2015, thereby driving investment growth this year