PE investments jump 55% to all-time high of $24 bn in 2017

Private equity firms invested USD 23.8 billion across 591 deals in 2017, making it the biggest year for PE investments in India, says a report.

According to deal tracker Venture Intelligence, the investment value is 39 per cent higher than the previous high of USD 17.1 billion (recorded in 2015) and 55 per cent higher than USD 15.4 billion invested during 2016.

In terms of number of deals the year 2017 saw 21 per cent less activity as compared to 2016 (731 deals), indicating large number of big-ticket transactions.

"The year witnessed 31 investment deals with size greater than USD 200 million, aggregating to USD 15.4 billion or 65 per cent of the total investments," the report said.

These figures include venture capital investments, but exclude PE investments in real estate.

In terms of industries, IT/ ITeS companies accounted for 45 per cent of the value pie attracting USD 10.7 billion worth investments across 325 transactions.

Flipkart received India's largest ever PE investment of USD 2.5 billion in a single round from Softbank and another USD 1.4 billion from strategic investors Tencent, eBay and Microsoft.

Softbank also invested USD 1.4 billion in mobile wallet and payments firm One97 Communications, which owns the Paytm brand.

BFSI (Banking, Financial Services and Insurance) companies continued to enjoy the second spot attracting USD 4.40 billion across 61 transactions.

The sector was led by Bain Capital's USD 1.04 billion investment in Axis Bank -- the largest ever single investment in the sector -- and Warburg Pincus' USD 384 million pre-IPO investment in ICICI Lombard General Insurance.

On the back of its two mega bets (Flipkart and Paytm), Softbank emerged as the largest investor during the year with investments totaling over USD 4 billion (including a USD 250 million investment in Oyo Rooms).

Other top investors include Canadian pension fund CPPIB with USD 2 billion investments across five companies; while Warburg Pincus invested USD 1.6 billion across nine companies, and KKR invested about USD 680 million.

China's Tencent emerged as a significant strategic investor in the Indian Internet and mobile sector with investment of USD 1.1 billion across home grown leaders like Flipkart, Ola, Byjus Classes and Practo.