PE/VC investment touches 6.8 billion dollars in November: Report

Investments by private equity and venture capital funds in the country stood at 6.8 billion dollars across 102 deals in November, which is double by value when compared with the pandemic-impacted year-ago period, the monthly data shared by industry lobby IVCA and the consultancy EY said. It adds, it is half of the bets in the preceding month of October.

In November 2020, such high-risk investors had infused 3.9 billion dollars, while in October, the total investments had stood at 13.1 billion dollars, the monthly data shared by industry lobby IVCA and the consultancy EY said.

The overall investments in the first 11 months of the year have touched 72.6 billion dollars, which is 53 per cent higher than the all-time high for a year achieved in 2020.

In November, the activity was dominated by 2.4 billion dollars of investments into start-ups and exits by private equity companies in nine initial public offerings, EY's partner Vivek Soni said. He added, although India has found itself in a macro-economic and geopolitical sweet spot, downside risks remain. The rise in domestic inflation on account of surging global energy prices, any potential slowdown in the government's reform agenda in view of upcoming important state elections and the threat of a new variant driven third COVID wave remain key speed bumps to watch out for in the coming months.

November recorded 17 large deals of over 100 million dollars each which alone totalled 5.4 billion dollars while the pure-play PE and VC investments (excluding the ones in infrastructure and real estate) stood at 5.7 billion dollars, it said.

The largest deals in November include the 1.5-billion-dollar buyout of Encora Digital by Advent and an 840-million-dollar investment in Dream11 by a group of investors including Falcon Edge, D1 Capital, Tiger Global, TPG and others. It adds technology was the favourite sector for investments, followed by e-commerce.

The month recorded 21 exits worth 3.6 billion dollars, as against 974 million dollars in November 2020 and 5.3 billion dollars in October.

Total funds raised for investments in the future stood at 610 million dollars compared to 20 million dollars in November 2020 and 70 million dollars raised in October 2021, the report said. (With inputs from PTI)