Millennium Post

PE investments rise 55% to $4.35 billion in Oct-Dec

Private equity investments in the country witnessed a stellar fourth quarter in 2014 with deals worth $4.35 billion, registering the best quarterly performance since the December quarter of 2007, says a report.

According to the PwC MoneyTree India report, a quarterly study of private equity investment activity, deals in the December quarter of 2014 totalled $4.35 billion in value terms across 107 such transactions.

Despite a 9 per cent drop in the number of transactions compared with the previous quarter, the total deal value rose by 55 per cent - the highest since December quarter of 2007, which saw investments worth $5.40 billion.

The investment value doubled, in comparison with the same period last year, with just a 4 per cent increase in volume. During October-December 2013 period, the total investment was $2.21 billion across 103 deals. Sector-wise, the IT & IT-enabled services retained the top slot, attracting $2.56 billion through 59 deals, which is more than half of the total investments, driven largely by investments in the e-commerce sector.

“E-commerce contributed significantly to the surge in the private equity investments during the calender year 2014. This is expected to continue as e-commerce businesses attempt to keep themselves well capitalised. Online marketplaces like Flipkart and Snapdeal led the race, followed by niche companies such as Urban Ladder and OlaCabs.

“The e-commerce sector is expected to continue on the growth trajectory in 2015, with more investments driven by likely improvements in regulatory environment and policy,” PwC India leader, Technology, Sandeep Ladda said.
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