| |
|
|
|
trouble in view?
view in browser
|
|
| |
|
|
|
|
PRIVATE EQUITY AND
|
|
VENTURE CAPITAL
|
|
ECOSYSTEM IN INDIA
|
| |
| |
|
|
OVERVIEW
|
|
|
|
Private equity and venture capital investments in India have shown strong potential in the second quarter of 2020 with 161 deals across sectors. Specific sectors that led the investments include healthcare and consumer - raising USD 742 Mn and USD 250 Mn respectively in Q2 2020.
|
|
|
|
Due to the COVID pandemic there has been a clear cut back on the number of large-ticket investment deals- contributing to the low investment momentum, especially in banking, financial services and insurance (BFSI) and real estate.
|
|
|
|
VC investments remained unaffected as they maintained H1 2019 levels of about USD 4.3 Bn. Consumer technology and SaaS continued to get the largest share of VC investments, with sizeable fundraises by BYJU’s, Swiggy, CureFit, Unacademy and Postman.
|
|
|
|
Despite the global economic slowdown due to COVID-19 ,abundance of idle dry powder with firms waiting to be deployed, coupled with the exigencies of fund life cycles, will inevitably push global PE-VC funds back into the field.
|
|
|
| |
|
|
|
| |
|
|
|
|
|
| |
| |
|
|
| |
| |
|
|
E-commerce
|
|
|
|
The USD 850 Bn Indian retail market is the fourth largest in the world. The market is on the verge of a digital transformation not seen in the economic history of the world. Leading this transformation are a host of factors backed by cheap data, growing online user penetration, and innovations disrupting the supply chain. The Indian e-retail market is positioned to reach nearly 350 million shoppers over the next five years. The online gross merchandise value is expected to reach USD 120 Bn by 2025. In 2019, the e-commerce sector recorded eight large deals worth USD 2.6 Bn with a 40% growth rate annually. Further analysis shows a shift in e-commerce activity to different business models – from traditional B2C retail e-commerce platforms like Flipkart, Pepperfry, BigBasket, etc. to segments like fintech, healthtech, logistics and hyperlocal delivery, edtech, travel and hospitality.
|
|
|
|
Among all sectors sub-categorised under e-commerce, Fintech recorded USD 2.5 Bn in investments in 2019, a growth of around 2.5 times compared to 2018.
|
|
|
|
COVID-19 accelerated the user adoption rate for e-commerce in India, in line with the trends observed for organisations like Amazon, Shopify & Costco. New players are entering into the online marketplace with backing from major e-commerce players, including Flipkart’s investment in Arvind Fashions or Reliance Industries’ Jio Mart debut in the Indian consumer space or Amazon investments in startups enabling B2B ecosystem. Flipkart Group’s recent decision to buy Walmart India, will further increase the market consolidation fight among major players. As COVID-19 impacts industries, convenience will be a major nudge for Indian shoppers to buy online, thus leading to tremendous growth in India’s ecommerce market.
|
|
|
|
|
|
|
| |
|
|
| |
|
Contact Us
|
|
|
Invest India’s Financial Investors Initiative team has been set up with the objective of facilitating greater allocation of capital to India by Limited Partners and increased deployment by General Partners. The team works with investors to identify investment opportunities, undertake policy advocacy, and facilitate resolution of issues at different stages of investment.
|
|
|
|
|
|
|
|
|
|
|
Invest India
|
|
Vigyan Bhavan Annexe, First Floor
|
|
Maulana Azad Rd, South Block, Man Singh Road Area
|
|
New Delhi, Delhi 110011
|
|
|
To unsubscribe, click here.
|
|
|
|
|
|
|
|
