PE-VC Investments In India 2021: Whopping 52% YoY Increase to Record $49 Billion

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There are raining investments in Indian companies! Both private equity and venture capital investments in Indian companies have reached an all-time high in 2021, breaking all previous years’ records.

The Private Equity – Venture Capital (PE-VC) firms have so far invested a record $49 billion in Indian companies in 2021, across 840 deals, according to Venture Intelligence. It represents a whopping 52% YoY increase in PE-VC investments in India in the first nine months of 2021, compared to the same duration last year when investments totaled $32.2 billion across 651 deals.

Notably, PE/VC investments in India during the first 9 months of 2021 have already surpassed the total investments of $39.5 billion, which was recorded in 2020 across 892 deals. This indicates the unprecedented confidence of investors in Indian firms, especially in Indian startups.

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Here are major highlights of VC investments in India 2021:

  • Indian companies received a record $48.75 billion investments across 840 deals from private equity and VC firms during the first 9 months of 2021.
  • The PE-VC investments in Q3 2021 surpassed $20 billion across 368 deals, with an impressive 35% QoQ and a whopping 69% YoY increase.
  • A record 29 new Unicorns were born during the first 9 months of 2021, 13 of which entered ‘$1 billion club’ during Q3 2021.
  • PE-VC firms invested approximately $20 billion in Unicorns during the first nine months of 2021, accounting for 41 percent of total investment in Indian companies in 2021 thus far.
  • The VC investments in Unicorn startups totaled over $10 billion, across 28 deals, in Q3 2021.
  • In Q3 2021, there were 40 mega deals ($100 million+ rounds) worth $15.9 billion, up from 15 mega deals worth $9.9 billion in Q3 2020. Mukesh Ambani owned Reliance Retail Ventures emerged as the biggest fund-raiser in 2020.

India’s e-commerce giant Flipkart led the top three billion-dollar deals that were made in the third quarter of 2021. In July 2021, Flipkart raised $3.6 billion at a post-money valuation of $37.6 billion. This is followed by the sale of Hinduja Global Solutions’ healthcare division to Baring Private Equity Asia for $1.2 billion. In August 2021, US private equity major Blackstone acquired a controlling stake in the wealth management-focused ASK Group for $1 billion. The fourth and fifth largest private equity investments in Q3 2021 include Eruditus’ $650 million Series E fundraise and merchant commerce platform Pine Labs’ $600 million fundraise, respectively.

IT & ITeS, BFSI (Banking, Financial Services & Insurance), and Healthcare & Life Sciences are the top three industries that have attracted the most investors. Investments in Indian crypto and blockchain startups have also increased a whopping 1,482% in the last five years.

The record increase in investment amount in Indian companies, especially startups, has made India attracting the eyeballs of many small to mid-size to big giants who, so far, have been skeptical about the sustainability of India’s growth story. Having 3 months to go still, it would be interesting to see if the total PE-VC investment in India touches $60 billion by end of this year.

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