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The Fourth Wheel 2017

Our fifth edition of “The Fourth Wheel” brings to you some interesting insights on PE/VC investments in India. It also gives an understanding into the growing entrepreneurship and startup ecosystem, and its outlook.

The Indian private equity (PE) space has over the years transformed into a significant source of funding for the Indian businesses including startups. The Indian economy is currently witnessing reforms being implemented, leading to fiscal and economic growth. This bodes well for the investors as it presents possible investment opportunities with growth opportunities to PE/VCs over a medium to longer term investment horizon.

Key highlights of the publication are:

  • The year 2016 witnessed US$ 14 bn value across 971 deals compared to 2015, where in US$ 16 bn value was raised across 1,045 transactions
  • PE transaction values reduced by 12 percent primarily due to lesser large ticket deals when compared to 2015; PE investments declined for the first time in four years
  • Significant increase in majority/buyout deals (buyout deal values clocked US$ 3.7 bn in 2016 as compared to US$ 1.1 bn in 2015)
  • While the total number of VC deals remained more or less the same in 2016 as compared to 2015, the median deal size decreased from US$ 2.4 mn to US$ 1 mn
  • 2016 witnessed PE exits valuing US$ 4.7 bn as compared to US$ 3.9 bn in 2015
  • Startups attracted investments worth US$ 2.5 bn from 666 deals in 2016 (18 percent of total deal value and 69 percent of total deal volume)

We hope you find this publication informative and welcome your feedback.