PE/VC investments and exits slide over 30% y-o-y in February: IVCA-EY

Our Bureau Mumbai | Updated on March 17, 2020 Published on March 17, 2020

The Private Equity and Venture Capital (PE/VC) industry recorded investments worth $1.7 billion across 74 deals, with $677 million invested as growth capital in February. Exits stood at $321 million across 15 deals, with open market exits accounting for 83 per cent of the total value of exits.

The PE/VC investments and exits fell by more than 30 per cent on a year-on-year (YoY) basis, according to the monthly round-up by the Indian Private Equity & Venture Capital Association and EY (IVCA-EY).

“After a good start to PE/VC investments in 2020, both investment and exit activities declined considerably in February 2020. The decline in value of PE/VC investments is primarily on account of the number of large deals (>$100 m) going down substantially,” Vivek Soni, Partner and National Leader-Private Equity Services at EY India said.

The uncertainty over the impact of COVID-19 is expected to act as a significant headwind to Indian PE/VC investments.


The PE/VC investments in February 2020 recorded a 24-month low of $1.7 billion. These were 39 per cent lower than the $2.8 billion recorded in February 2019 and 32 per cent lower compared to $2.5 billion in January 2020.

The decline in value was mainly on account of fewer large deals (value greater than $100 million). In terms of volume, the number of deals in February 2020 was 21 per cent higher than in February 2019.

There were five large deals worth $700 million in February 2020, compared to nine deals worth $2 billion last year and five deals worth $1.4 billion in January 2020. This is the lowest aggregate value of large deals in over 19 months. The largest deal announced in February saw General Atlantic invest $200 million in ed-tech company Byju’s, followed by Warburg Pincus’ investment of $150 million in Apollo Tyres.

In February 2020, growth capital deals were the highest in value with $677 million recorded across 15 deals, recording 55 per cent YoY decline ($1.5 billion in February 2019) followed by start-up investments worth $562 million across 44 deals, 3.6 times higher on YoY ($154 million in February 2019) and PIPE investments worth $260 million, 40 per cent YoY decline ($431 million in February 2019).

Buyouts recorded investments worth $209 million across three deals, compared to $187 million across two deals in February 2019.

The education sector with $311 million across five deals emerged as the top sector for the first time due to the large investment in Byju’s, followed by technology ($271 million across 18 deals) and real estate ($232 million across three deals). Financial services, traditionally one of the top sectors, was relegated to the fifth place with $162 million invested across nine deals.


Exits worth $321 million were recorded in February, 32 per cent lower than the value of exits recorded in February 2019 ($472 million) and 30 per cent lower than in January 2020 ($461 million). The largest exit in February 2020 saw Baring India Private Equity sell its 4.9 per cent stake in Manappuram Finance for $101 million.

In February 2020, open market exits were highest at $266 million across seven deals, accounting for 83 per cent of total exits by value. Financial services sector ($305 million across six deals) was the top sector in February 2020, accounting for 95 per cent of all exits by value.


The total amount of funds raised in February stood at $603 million compared to $285 million raised in February 2019. The largest fund-raise during the month saw Caisse de dépôt et placement du Québec (CDPQ) and Piramal Asset Management setting up a $300-million platform for credit financing.

Published on March 17, 2020
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