Economy

Private equity flows hit high of $48 billion in 2019

K.R.Srivats New Delhi | Updated on February 17, 2020 Published on February 17, 2020

Padmanabh Sinha, IVCA Chairman

Private equity and venture capital anchor of the economy, says IVCA Chairman

Private equity and venture capital investments into India hit an all-time high of $48 billion in 2019, Padmanabh Sinha, Chairman, Indian Private Equity and Venture Capital Association (IVCA), has said.

“Private equity and venture capital has become the anchor of the economy and is now the largest source of FDI. It is one of the few shining spots in the economy even while facing global headwinds and domestic issues”, Sinha said at the IVCA conclave 2020 in the capital.

A EY India report released on the occasion showed that over the past three years, PE/VC investments in India have grown at a CAGR of 44 per cent.

The cumulative PE/VC investments received during this period are almost equal to the investments received in the preceding 10-year period during 2007-2016, according to the report.

India has received PE/VC investments worth $198 billion during 2009-2019, of which the last three years, 2017-19, have accounted for 56 per cent.

For 2019, infrastructure sector saw PE/VC investments of $14.5 billion.

Buyouts prominent

For the first time in India, buyouts have emerged as the largest PE/VC investment deal type, overtaking the growth capital deals and accounting for 34 per cent of all PE/VC investments by value in 2019, according to the EY India report.

Buyouts have been on an uptrend over the past 4-5 years, growing more than five times in value since 2016, which had then recorded buyouts worth $3 billion.

Meanwhile, Bain & Co said on Monday that venture capital investments into India in 2019 touched $10 billion ($6.5 billion). As much as 80 per cent of this VC investment in 2019 was in four sectors — consumer tech, fintech, software and B2B commerce.

Published on February 17, 2020
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