<div><em>IT & ITES continues to be the preferred sector for PE/VC investments and within it, e-commerce generates significant investor interest, reports <strong>Paramita Chatterjee</strong></em></div><div> </div><div>At a time when a host of economic reforms in the Indian economy are in a logjam and capital markets are reeling under pressure due to lack of cues from both the international and domestic market, the investor community is happy. Reason: the fast pace at which private equity and venture capital investments are taking place this year.</div><div> </div><div>In the month of August alone this year, the number of private equity and venture capital deals jumped to 102, more than double the number of deals sealed in August 2014, as per latest data available with Grant Thornton. In absolute terms, this is an almost 113 per cent jump as the number of deals in August 2014 stood at 48. And if that is not enough, in terms of value, investors pumped in $1,725 million, a 228 per cent jump from $526 million infused in August 2014. However, as far as mergers and acquisitions (M&A) were concerned, sentiments were muted when compared to the corresponding month last year, largely due to fewer and smaller big ticket deals this year. The number of M&A in the month of August 2015 came down to 42 worth $899 million from 47 totalling $1,127 million in August 2014.</div><div> </div><div>IT & ITES continues to be the preferred sector for PE/VC investments and within it, it is e-commerce that is increasingly evincing significant investor interest. “Over the past one year in particular, there has been an explosion of online companies that have the potential to give superlative returns,” says Arvind Mathur, President at Private Equity and Venture Capital Association (IVCA). “Sectors such as mobile and online services offer tremendous opportunity. The nature of the business is such that on an average even if one out of 10 becomes a blockbuster, the purpose is served,” he adds.</div><div> </div><div>Some of the significant private equity deals include $500 million investment into Jasper Infotech that owns Snapdeal by Foxconn, Alibaba and SoftBank and Kohlberg Kravis Roberts’s investment in JBF Industries Ltd Manufacturing. In the real estate sector, Goldman Sachs infused $150 million in Piramal Realty.</div><div> </div><div>“Private equity and inbound (mergers and acquisitions) deals continue to demonstrate growth perhaps because the overall macro level indicators continue to look positive, whereas domestic M&A activity and outbound transactions have been falling behind,” said Prashant Mehra – Partner at Grant Thornton India.</div><div> </div><div>The total number of PE/VC deals so far this calender year (January-August period 2015) stood at 675. In 2014, there were 388 deals sealed during the same period.</div>
