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PRIVATE EQUITY AND
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VENTURE CAPITAL
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ECOSYSTEM IN INDIA
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PE/VC 2020 OVERVIEW
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Private equity deal values in 2020 were nearly at par with those of the previous year, recording 1,268 transactions worth USD 80 Bn, up 7% from 2019, with big ticket deals (≥USD 100 Mn) amounting to ~80% of total deal value whereas small ticket deals (≤USD 5 Mn) contributed ~2% to the total value.
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Further, venture capital funds through early-stage investments witnessed an increase in the number of deals. The Indian start-up ecosystem garnered over USD 11 Bn in 2020 and saw the emergence of 11 new unicorns, becoming the third-largest startup ecosystem in the world. Education emerged as a major investment area this year, with investments worth USD 1.3 Bn, mainly on account of noteworthy investments in Byju’s.
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The clogged pipeline of investments that were shelved due to uncertainties is beginning to clear up. Sectors such as SaaS, Pharma and Edtech are leading the investments’ corpus in the country. Several other sectors, such as renewable energy, are also garnering interest among PE investors, as can be seen from the setting-up of O2 Power and the solar asset purchases from ACME Cleantech Solutions and SP Infra.
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PHARMACEUTICAL
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The pharmaceutical sector in India has been one of the biggest beneficiaries of the disruption caused by the pandemic this year. COVID outbreak has made it the most sought-after sector for institutional investments.
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India is seeing increasing interest from international companies, especially from the Asia-Pacific region, that want to invest in the country with a goal to diversify and safeguard their supply chains.
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A new domain that has emerged under the wider umbrella of the Indian pharmaceutical sector is the e-pharmacy space. The tailwinds brought by the pandemic have quickened the pace of consumers moving online resulting in a wide adoption of E-Pharmacies, with ventures like 1mg receiving USD 100 Mn capital infusion from marquee names such as the TATA Group and World Bank’s IFC.
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This market is expected to grow at 12-15% annually and has the potential to capture 5-10% of the global pharma sales over the next five to seven years.
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ABOUT US
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Invest India’s Financial Investors Initiative 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.
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Invest India
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Vigyan Bhavan Annexe, First Floor
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Maulana Azad Rd, South Block, Man Singh Road Area
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New Delhi, Delhi 110011
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