PE-VC investments grow 3X in January
Chennai: The Omicron wave did not deter private markets in India as value of private equity and venture capital investment rose 3X year-on-year in January 2022.
January clocked 123 PE-VC deals worth over $5.1 billion compared to 81 deals of $1.7 billion, as per data sourced from Venture Intelligence. Sequentially, investments grew by around 42% compared to December.
Large growth capital rounds contributed to the upswing in the month as the number of deals over $100 million stood at 15 – up almost 4x from the same period last year with just four deals.
Early-stage investments also enjoyed a boost increasing from 43 deals of $149 million in January 2021 to 67 deals for $312 million in January 2022.
IT and IT enabled sectors continued to account for a large chunk of deals at more than 70%. Emerging sectors such as crypto registered a 5x growth in investments from December 2021, as January 2022 recorded six deals worth over $27 million in the crypto sector.
Google’s investment in Bharti Airtel of over $700 million as part of its Google for India Digitization Fund, Swiggy’s $700 million raise led by Invesco making the food tech giant a decacorn, and Fractal Analytics raising $360 million from TPG Capital and entering the unicorn club, were the major deals this month.
The recent surge in Covid cases and the associated downtime in business activities had no effect on the private markets in January and continued the 2021 surge, Arun Natarajan, founder and MD, Venture Intelligence, said. “The global PEs and VCs driving the Indian startup ecosystem continue to remain bullish on India,” he added.
Natarajan however warns of some moderation by the end of February if the corrections in the US stock markets continue and depending on the US Fed moves. “Venture capitalists are already asking portfolio enterprises to tighten their belts,” he said.
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January clocked 123 PE-VC deals worth over $5.1 billion compared to 81 deals of $1.7 billion, as per data sourced from Venture Intelligence. Sequentially, investments grew by around 42% compared to December.
Large growth capital rounds contributed to the upswing in the month as the number of deals over $100 million stood at 15 – up almost 4x from the same period last year with just four deals.
Early-stage investments also enjoyed a boost increasing from 43 deals of $149 million in January 2021 to 67 deals for $312 million in January 2022.
IT and IT enabled sectors continued to account for a large chunk of deals at more than 70%. Emerging sectors such as crypto registered a 5x growth in investments from December 2021, as January 2022 recorded six deals worth over $27 million in the crypto sector.
Google’s investment in Bharti Airtel of over $700 million as part of its Google for India Digitization Fund, Swiggy’s $700 million raise led by Invesco making the food tech giant a decacorn, and Fractal Analytics raising $360 million from TPG Capital and entering the unicorn club, were the major deals this month.
The recent surge in Covid cases and the associated downtime in business activities had no effect on the private markets in January and continued the 2021 surge, Arun Natarajan, founder and MD, Venture Intelligence, said. “The global PEs and VCs driving the Indian startup ecosystem continue to remain bullish on India,” he added.
Natarajan however warns of some moderation by the end of February if the corrections in the US stock markets continue and depending on the US Fed moves. “Venture capitalists are already asking portfolio enterprises to tighten their belts,” he said.
Shailendra Singh, MD, Sequoia Capital, recently said in a tweet that the current changes in the market is a good time for founders ‘to re-calibrate your projects, if you haven’t already done that.’
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