In June 2021, PE/VC investments fell by 22%
According to a report, investments by private equity and venture capital funds declined by 22% in June’ 2021 in comparison to June 2020, valuing at US$ 5.4 billion. However, the investment in H1 2021 were up by 45% year over year (yoy), stated the monthly report by IVCA, industry lobby group and EY, India’s consultancy firm.
According to EY partner Vivek Soni, both H121 and Q2 2021 led to recorded high levels of pure-play PE/VC investments, reaching US$ 21.9 billion and US$14.1 billion respectively. India’s PE/VC investment activity, grew at a fast pace which is expected to continue throughout 2021.
Sector wise, technology, e-commerce, financial services, pharmaceuticals, education, and media and entertainment have seen rise in investment amid the pandemic while there has been a decline in infrastructure and real estate asset classes and the retail and consumer products. In June 2021, 12 large deals aggregated at US$ 3.6 billion while in June 2020 11 large deals worth US$ 6.1 billion took place.
Furthermore, June 2021 witnessed 29 exits which were valued at US$ 3.2 billion, 4.8 times exits in June 2020 where in comparison to May 2021, it experienced 74% decline. According to the report, June 2021 witnessed total fundraises of US$ 325 million an increase of US$ 204 million in comparison to June 2020.