PE/VC investments worth $3.1 billion recorded in May

Private equity and venture capital investments touched $3.1 billion in May this year, the highest monthly investments in last 10 years, mainly driven by the Paytm-Softbank transaction.

According to global consultancy firm EY, PE/VC investments also crossed the $2 billion mark for the third consecutive month in May.

On the continued buoyancy in PE/VC investments in India, Mayank Rastogi, Partner and Leader for PE, EY said the PE/VC market has significantly matured overtime. Five to seven years ago, the classic growth capital was the only meaningful capital pool available, but now, a variety of options are available that address specific needs.

"There are variety of capital pools now available ranging from angel/VC to buyout funds, family offices, pensions and sovereigns, corporate funds, debt funds, sector focused funds providing solutions that address specific needs - this is one of the key drivers for continuing buoyancy in PE/VC investments in India despite slow growth capital investing," Rastogi said.

The $1.4 billion investment in Paytm by Softbank, was the top deal during May and accounted for 46 per cent of aggregate deal value.

Meanwhile, Canadian pension funds further added to their India investments with CPPIB investing $500 million in Indospace for a majority stake, thus taking the investments by Canadian pension funds in 2017 close to $2 billion.

There were five deals of more than $100 million aggregating to $2.3 billion, accounting for 75 per cent of the aggregate deal value in May 2017.

From a sector perspective, Financial Services ($1.6 billion across 11 deals) emerged as the most active sector on account of the Paytm-Softbank deal, the largest deal in the financial services sector till date, EY said.

Financial services was followed by real estate ($709 million across 4 deals) and ecommerce ($211 million across 6 deals) in terms of activity, it added.