Private equity, venture capital investments slump 50% in Nov

K R Srivats New Delhi | Updated on January 16, 2018 Published on December 12, 2016

Decline seen both in value and volume terms

Private equity/ venture capital investments declined both in terms of value and volume in November, an EY analysis showed.

In value terms, PE/VC investments in India stood at $908 million, down 50 per cent, from $1.82 billion in November last year.

Deal volume declined 25 per cent over the same month last year. Investment in expansion/ growth declined 67 per cent compared to October 2016 with $137 million invested across four deals.

Structured/debt deals contributed more than a third of the total deal value. Exits in November stood at $63 million, a decline of 86 per cent from $464 million in November 2015.

This was mainly on account of two reasons — i) a sharp decline in both value and number of expansion/growth deals; and ii) decline in overall e-commerce investments.


E-commerce recorded the lowest deal value and volume in over 24 months with $5 million invested across two deals.

Commenting on the PE landscape, Mayank Rastogi, Partner and Leader for PE, EY said that there has been a slowdown in the growth capital activity in the last few months and the lack of deal closures in November 2016 further compounded the issue.

This has been somewhat compensated by the structured deals/refinancing activity, largely in the real estate sector and the large buyout deals, he added.

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Published on December 12, 2016
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