63% PE firms Optimistic of Increased Deal Activity in India in 2017: News Corp VCCircle Survey

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New Delhi: News Corp VCCircle, India’s leading publisher of alternative investment, deals and startup news, data and information and part of globally diversified media, education and information services group, News Corp, has today released the findings of its PE-VC Outlook Survey 2017.

The survey insights are the result of a questionnaire sent to heads and partners of large global and Asian funds that invest in India. The survey elicited responses from small to very large PE firms and VC firms over a span of eight weeks from Jan-Feb 2017. The survey respondents were restricted to only the top layer of executives including Partner, Managing Partner, Managing Director and similar designations in terms of hierarchy.

 

Key Highlights of the 2017 Survey

  • 63% of the private equity investors who participated in the survey expect deal-making to gather pace in 2017 as against 2016
  • Top three sectors of choice for Private Equity players in 2017 – Financial Services (66%), Health (52%) and Consumer Discretionary (48%)
  • 60% of the VCs surveyed have expressed intent to increase funding of Indian start-ups in 2017, with 32% being of the opinion that new VC firms are more likely to dominate deal activity during the year
  • Top three sectors to attract Venture Capital fundingFin-tech (80%), Health-tech (68%) followed by Digital Media (32%)
  • Top Domestic factor which PE/VCs are watching out for: Results of the State elections in India’s largest state – Uttar Pradesh
  • Top Global factor which PE/VCs are watching out for: U.S. Trade policy changes that may adversely impact the IT and ITES sector

News Corp VCCEdge data as on 27th February 2017 has revealed that there have been 129 deals amounting to $ 665 million so far in the first two months of the year, with 39 exits amounting to $ 355 million.

 

Releasing the survey results at the News Corp VCCircle India Limited Partners Summit 2017, Nita Kapoor, Head – India New Ventures, News Corp & CEO, News Corp VCCircle said, “It is estimated that over $ 7 billion is waiting on the sidelines to be invested by India-focused funds. This is a figure which is at a 6 year high. A lot would depend on macro factors such as continued implementation of economic reforms and clearing of uncertainties posed by geo-political developments for its deployment. Qualitative investment opportunities presented by companies with sound business models will determine the quantum of deal activity for the remainder of the year. Our survey highlights that investors have adopted a wait and watch approach in 2017 and are ‘Cautiously Optimistic’.”