Jio dominates PE investments space

New Delhi: The month of May recorded investments worth $5.4 billion across 58 deals, with $4.6 billion invested in Jio Platforms, according to the IVCA-EY monthly PE roundup.

Private equity and venture capital investments almost doubled in May 2020 on year on year basis. Jio Platforms received $4.6 billion in PE/VC investments in May 2020, accounting for 85 percent of all PE/VC investments during the month.

The financial services sector accounts for over 60 percent of all PE/VC exits by value and volume in May. Fundraises in the first five months of 2020 are a third of the funds raised during the same period last year. Exits recorded $286 million across 11 deals, with financial services sector accounting for over 60 percent of all exits by value and volume. Vivek Soni, Partner and National Leader - Private Equity Services, EY India said, "The fundraising spree by Jio Platforms has pushed Indian PE/VC investment in May 2020 above $5 billion. Adjusting for these marquee deals, Indian PE/VC investment activity is on a downward trajectory.

Nonetheless, these deals help highlight investor confidence in the India story". The defensive sectors are witnessing renewed interest from investors. In May 2020, life sciences sector received the second highest amount of PE/VC investments of $354 million (after telecom). On the exits front, financial services sector recorded the highest value of exits as investors looked to book some profits in listed securities after the recent recovery in the equity indices.