2014 turned to be a bumper year for VC/PE investments in India Amount invested up 58% , number of deals surge 28%, Angel deals up 46%

2014 was a bumper year for VC/PE transactions, easily topping the numbers seen in the last 3-4 years. The year witnessed 559 recorded transactions, which was a jump of almost 30% over the previous year. Amount invested jumped even more, up almost 60% to cross $13B, shows data by research firm India Business Reports

Mumbai, Maharashtra, January 1, 2015 /India PRwire/ -- 2014 was a bumper year for venture capital / private equity (VC/PE) transactions in India, easily topping the numbers seen in the last 3-4 years.

The year witnessed 559 recorded transactions, which was a jump of almost 30% over the previous year. Amount invested jumped even more, up almost 60% to cross $13B, shows data by research firm India Business Reports (www.indiabusinessreports.com).

Average deal size increases

In 2014, deal details were disclosed for 379 transactions. Almost one-third of deals done prefer not to disclose details. In other words, the $13.1B of investment is from these deals, giving an average deal size of $34.6m. This was 21% more than the average deal size for 2013. Average deal size has trended higher in the last 2-3 years.

Angel deals show sharp increase

A heartening development during 2014 was the sharp increase in number of angel deals reported. These shot up 46% over the 2013 number. While angel investing in India was pioneered by Mumbai Angels and India Angel Network, there are several angel groups active now. Such groups have come up at city level; Chennai, Hyderabad, even Jaipur have their own angel networks. Then there are funds focussed on angel investing. The best example here is Blume Ventures, which participated in 14 transactions in 2014, as per IBR data. Blume Ventures is reported to have funded over 50 transactions through its first fund, and is in the market to raise its second fund now.

Manufacturing, construction down

The slowdown in core sectors in the last 3-4 years is clearly reflected in the funding pattern. The share of PE money target at manufacturing and construction has come down sharply from an aggregate of around 40% to barely above 20%. Services - comprising IT, e-commerce, healthcare, travel and tourism - is where PE investors have increased their bets, much in line with the character of Indian economy. The new PM Narendra Modi's 'Make in India' needs to do more get a buy-in from PE funds.

Notes to Editor

About India Business Reports

India Business Reports (IBR) is an initiative of experienced professionals with comprehensive experience across wide domains - Research, Investment Banking, Private Equity Funding, Consulting, Branding and Marketing. The single minded objective at IBR is to generate insightful reports based on hard facts. Our expertise is relevant not only for the financial fraternity, but also global MNCs looking to do business with India, and Indian companies looking to fine tune their growth strategies. So be it India entry strategies, growth strategies, M&A opportunities or private equity investments, our reports can become a powerful tool in many ways.

IBR typically does custom research, on request from clients. The reports shown on our website are sample reports for marketing purposes. These are available free for students and academia. We may impose a charge for corporate users.


Journalists and Bloggers
Visit India PRwire for Journalists for releases, photos, email alerts and customized feeds just for Media.

If you have any query regarding information in the press releases, please contact the company listed in the press release itself. Please do not call India PRwire, we will be unable to assist you with your inquiry.