'Decadal PE/VC investments in India cross $232 bn by 2020'

Mumbai: The country has received $232.4 billion in private equity/venture capital investments during the decade ending 2020, with the alternate asset class growing 19 per cent each annually during the 10-year period, says a report.

The report by EY and Indian Venture Capital Association (IVCA), released on Friday, also said as much as 68 per cent of all PE/VC investments into the country over the past decade were in the past four years, aggregating $158.5 billion.

Also, as much as 44 per cent of the total investments were growth investments during 2011-20. Financial services, infrastructure, real estate, e-commerce and technology were the most preferred sectors for investments, accounting for around 70 per cent of all PE/VC investments during the decade.

"The cumulative value of PE/VC investments during 2011-20 totalled $232.4 billion, which is more than twice the value recorded in the preceding decade," the EY-IVCA report said.

IVCA Chairperson Renuka Ramnath said despite the challenges arising from the pandemic, the domestic PE/VC ecosystem has only become more resilient and better at finding newer opportunities bringing in much needed capital, becoming the single largest source of FDI. During this past decade, the dollar value of domestic PE/VC investments grew from $8.4 billion in 2010 to $47.5 billion in 2020, an annual growth 19 per cent, she said.

PE/VC backed companies are bringing in new business models, creating new jobs, backing entrepreneurs and helping fund financial inclusion, better infrastructure, increase renewable energy and promote capital efficiency in the overall economy, she added.

While the decade was a mixed bag for PE/VC exits, the $17-billion Flipkart-Walmart deal was a turning point for the domestic PE/VC industry, especially the startup ecosystem.