New Delhi, Feb 14 According to the IVCA-EY monthly PE/VC roundup, January 2022 recorded investments worth US$4.5 billion across 117 deals, including 13 large deals worth US$2.9 billion.
Exits recorded US$289 million across 14 deals in January 2022, including 10 strategic exits for which the transaction values were not disclosed.
Vivek Soni, Partner and National Leader Private Equity Services, EY said, "After a record year in 2021, Indian PE/VC investments are off to a good start in January 2022, recording US$4.5 billion in PE/VC investments, a 180 per cent increase over January 2021. This increase has been primarily driven by VC/start-up investments that surged to US$3 billion, representing 68 per cent of the total monthly PC/VC investment received (Jan 2021 - US$700 million; Dec 2021 - US$3.2 billion).
January 2022 also recorded 13 large deals (deals of value greater than US$100 million) aggregating US$2.9 billion compared to three large deals worth US$680 million in January 2021.
PE/VC exits in January 2022 recorded US$289 million across 14 deals, 10 out of which were via sale to strategics.
While secondary exits have driven most of the disclosed exit value, the aggregate exit value could be higher as most strategic deals have not disclosed transaction values. After a spate of PE-backed IPOs in 2021, there were no PE-backed IPOs in January 2022 on account of increased volatility in the mid-cap and small-cap indices and should the current prevailing market volatility persist, February and March 2022 could be similar.
After a two year decline, fundraising by India focused PE/VC funds has picked-up, with January 2022 recording US$3 billion in fundraises. While majority of the fundraises over the past five years have been sector agnostic, fund raising by technology/ internet dedicated funds as well as clean energy related funds has picked-up in recent years.
Mirroring what has been observed in US and European markets in 2021, we expect 2022 to be a record setting year for fund raises by Indian dedicated PE/VC funds.
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