VCCEdge Deal Report for Q2 CY2015 observes an upswing in Venture Capital and Seed funding, bolstering India’s Start-Up ecosystem
VCCEdge, the financial database and research platform of the VCCircle Network, India’s leading online financial data and information services group, owned by News Corp, has today released its Quarterly Deal Report for the quarter ended June 2015. Presenting a statistical and analytical overview of deals in the private equity, merger & acquisition and public offerings space with sector and region-wise analysis, the report highlights:
Investor Confidence in India on the mend
· Private equity investments in Q2 2015, excluding real estate, were recorded at $3.85 billion across 262 deals, an increase of 29% in deal volume and 43% in deal value, compared to Q2 2014. The average deal value jumped 19% to $20.48 million in the latest period from $17.14 million in 2014.
· Big-ticket deals (at least $100 million) constituted 71% of the total private equity capital invested in Q2 2015.
· The first half of 2015 registered 513 PE deals valued at $8.3 billion from $4.9 billion investments in 403 deals during the same period last year translating into an increase of 27% in deal volume and 70% in deal value. This has been primarily due to a rise in early-stage and venture capital investments in technology companies.
· Private Equity exits in the first half of 2015 dipped by 3% in terms of deal volume.
· 447 M&A deals registered in the first half of 2015 rose 6% from 421 deals for the same period last year.
· Indian companies raised $306 million across 11 offerings in Q2 2015, representing an increase of 47% in deal value as against $208 million capital raised in Q2 2014.
Greater Access to Capital for the Start-up world
· Angel and seed investments rose three-fold in deal value to $58 million in the second quarter of 2015 from $20 million in Q2 2014. Deal volume spiked 94% to 140 deals in Q2 2015 from 72 deals in the previous year.
· Venture capital funding saw an upswing with 89 deals in the Q2 2015 from 73 deals in Q2 2014, registering a growth of 22%. Deal value also shot up to $725 million in the Q2 2015, from $424 million the same quarter previous year.
· Telecommunication Services, Health Care, Materials, Consumer Staples and Industrials were the Top 5 sectors for M&A deals during the quarter in terms of deal value.
· Consumer Discretionary, Financial Services, Energy, Information Technology and Health Care were the Top 5 sectors for PE deals during the quarter in terms of deal value.
· Domestic M&A deals saw a spike of 18% in volumes while Outbound M&A deals showed a 3.8-fold growth, year-over-year, in value.
· India’s financial capital, Mumbai tops the list of Top 5 cities in the country that witnessed maximum M&A deals, followed by New Delhi, Bengaluru, Hyderabad and Gurgaon.
· India’s IT hub Bengaluru tops the list of Top 5 cities in the country that saw maximum private equity investments, followed by Mumbai, Delhi, Gurgaon and Chennai.
Commenting on the VCCEdge Quarterly Deal Report, Sahad P V, Founder, VCCircle Network said, “The story so far this year is how seed and early stage investment story have boosted private equity inflows into India as investors hunt for early bets. Meanwhile, late-stage private equity continues to be challenged with fewer deals than last year. M&A activity, though subdued particularly for inbound deals, is expected to pick up in the second half of the year with corporate earnings showing signs of improvement.”
Added Raju Narisetti, Senior Vice President, Strategy of News Corp and head of India new ventures: “While there has been tremendous interest and attention to the Indian start-up, VC and PE ecosystem, VCCEdge’s unique database allows us to provide, on a quarterly basis, rich data that goes beyond surveys and sentiment, to provide real data to make meaningful conclusions about investments in and into India.”