The start-up ecosystem in India is picking up pace with investments in July 2018 touching $2.42 billion, almost equal to the funding in July 2015. The total investment in $2.79 billion in July 2015.
The investment this year are substantially higher than funding in July 2016 and 2017, which saw $878 million and $1.5 billion being committed respectively, data from research firm Venture Intelligence showed.
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Investments made by private equity and venture capital totalled $1.5 billion in July through 63 transactions. The tally for the first seven months of this year stood at $16.9 billion according to EY’s private equity monthly deal tracker, 45 per cent higher compared to the same period last year.
“Notwithstanding headwinds at a global as well as the domestic level, Indian PE/VC investment activity has maintained a steady run rate so far, clocking an average of $2 billion worth of PE/VC investments per month in 2018,” Vivek Soni, Partner and National Leader Private Equity Services, EY said, according to the financial express. Soni further noted that “it appears we are well on track to witness another record year for PE/VC investments in India”.
Breaking away from recent trends, July recorded fewer large size deals. There were three deals of value more than $100 million (cumulatively worth $402 million), accounting for only 26 per cent of total investments as against a 65 per cent investment share of such deals in June 2018, the report said.
In terms of number of deals, technology sector led with 16 deals, infrastructure and real estate sectors recorded $392 million in investments across five deals. The largest deal in these sectors was KKR’s $176 million credit investment in real estate projects of Lodha and Shapoorji Pallonji, the report added.