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PE Roundup – September 2017
3Q2017September 2017
PE Quarterly Roundup – 3Q2017
Page 3
Key Trends - Quarterly
Investments
► PE/VC investments in India in third quarter (3Q2017) witnessed a sharp increase on the back of some large deals
with size in excess of US$ 200 million each. 3Q2017 recorded the highest investments in a quarter in the history of
the Indian PE/VC industry ever, bettering the high recorded in the previous quarter.
► On a quarterly basis, investments increased 180% in value (US$ 8.7 billion vs US$ 3.1 billion in 3Q2016) and 17%
in volume terms (141 deals v/s 121 deals in 3Q2016). This was driven by almost a five-fold jump in minority growth
capital investing, with US$5.7 billion invested across 46 deals, the highest quarterly growth capital investment ever.
Two mega deals in the month of August contributed to this surge (accounting for 45% of deal value in 3Q2017) with
Softbank investing US$2.5 billion in Flipkart for a 30% stake and GIC investing US$1.4 billion in DLF for a 33%
stake in its commercial assets business. Buyout (US$920 million across 6 deals) and PIPE (US$599 million across
8 deals) deals also recorded strong growth in 3Q2017 of 132% and 201% respectively.
► Early stage / VC deals continued to dominate the deal volumes accounting for 51% (72 deals) of all deals in
3Q2017, similar to last year.
► 3Q2017 recorded 19 deals of value greater than US$100 million, aggregating US$7.0 billion and accounting for
80% of the investments during the period. 2017 has witnessed and increasing proportion of large sized deals,
further validating the growing confidence of investors and maturing of the Indian PE market.
► From a sector perspective, Ecommerce, Real Estate, and Financial Services were the leading sectors in terms of
investments in 3Q2017. Ecommerce recorded US$2.6 billion across 18 deals primarily driven by Softbanks’s
US$2.5 billion investment in Flipkart, Real Estate recorded US$2.3 billion across 13 deals and Financial Services
recorded US$1.4 billion across 25 deals in 3Q2017. Technology, one of the top sectors to attract PE/VC funding in
the previous quarters, saw investments decline by 44% in 3Q2017 to US$235 million, compared to same period last
year, despite being at par in terms of deal volume at 24 deals, mainly due lower ticket size of investment.
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
EY Analysis of VCCEdge Data
Page 4
Key Trends - Quarterly
Exits
► Exits grew 128% by value in 3Q2017 (US$ 4.7 billion Vs US$ 2.0 billion in 3Q2016) while number of deals remained
at similar levels, recording the best quarterly performance for exits since 2009, driven by increase in exits via capital
markets (both primary and secondary) as well as secondary divestments (sale to other PE funds).
► Exits via IPO recorded US$1 billion in value terms, highest value for exits via IPOs in a quarter, mainly driven by the
largest IPO exit ever by a PE fund in India, which saw Fairfax selling its 12% stake in ICICI Lombard for US$558
million in September 2017. The other large IPO exit in 3Q2017 saw Kedaara Capital, IFC, Warburg Pincus, and
ChrysCapital sell their stake in AU Small Finance Bank Ltd for US$234 million. In comparison, the largest IPO exit
during 2009 to 2016 was of Equitas Holding, where a bunch of investors sold stake worth US$224 million in 2016.
The total value of exits via IPO’s in 2017 till date is higher than the aggregate value recorded between 2009 and
2016. IPO markets have been quite active since 2016, with 12 PE backed IPOs in 2017 till date (17 IPOs in the full
year of 2016). Moreover, 12 more PE backed IPO’s are awaiting listing by the end of 2017 including the likes of
MAS Financial Services, Lemon Tree Hotels Ltd etc.
► Open market exits recorded US$1.5 billion (32 deals) in 3Q2017, more than double the value recorded in 3Q2016
and the highest quarterly value of exits since 2009. Exits via secondary sale (sale to other PE funds) recorded
US$1.4 billion (9 deals); again, highest quarterly value of exits since 2009 for secondary sale which featured the
largest Ecommerce exit in India, with Tiger Global selling its partial stake in Flipkart for US$800 million to Softbank
in August 2017.
► From a sector perspective, Financial Services (US$1.6 billion across 12 exits), Ecommerce (US$819 million across
2 exits), and Healthcare (US$422 million across 8 exits) were the top sectors for exits in 3Q2017.
Fund Raise
► 3Q 2017 recorded US$2.2 billion in fund raise, highest quarterly fund raise since 2010, the largest being US$750
million raised by Kedaara Capital. There were US$1 billion new fund raise plans announced in 3Q2017.
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
EY Analysis of VCCEdge Data
Page 5
PE/VC headline trends – Quarterly
US$ mn #
2,698 4,813 3,450 5,139 6,003 5,043 4,310 3,658 3,097 5,138 4,185 6,874 8,688
113 126
181 188220
178146
164
121157
130
168141
0
50
100
150
200
250
-
2,000
4,000
6,000
3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017
Investments
991 1,081 1,161 2,749 1,205 1,358 2,067 1,073 2,046 1,483 2,033 2,790 4,668
48 4960 59
66 69
42 44
64 59 6170 65
0
20
40
60
80
-
1,000
2,000
3,000
4,000
5,000
3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017
Exits
470 1,279 1,892 1,938 1,285 1,325 2,075 942 320 976 1,287 719 2,234
5
10
5
11 12
8
1614
2
911
9
13
0
5
10
15
20
-
500
1,000
1,500
2,000
2,500
3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017
Fund Raise
EY Analysis of VCCEdge Data
Page 6
Investments – Q3 Analysis
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
3,097
8,688
3Q2016
3Q2017
Total Investment US$m
121
141
3Q2016
3Q2017
No. of Deals
780
398
199
565
1,155
741
920
599
726
5,703
Debt investment
Buyout
PIPE Financing
Start-up/ Early Stage
Expansion/ GrowthCapital
Deal Type US$m
15
7
7
54
38
9
6
8
72
46
Debt investment
Buyout
PIPE Financing
Start-up/ Early Stage
Expansion/ GrowthCapital
Deal Type #
148
261
809
914
965
185
254
632
627
6,990
< $10m
$10m - $20m
$20m - $50m
$50m - $100m
> $100m
Deal Size US$m
45
17
24
13
5
49
17
20
10
17
< $10m
$10m - $20m
$20m - $50m
$50m -$100m
> $100m
Deal Size #
** Deal value not available on 26 out of 141 deals in 3Q2017 and 17 out of 121 deals in 3Q2016
EY Analysis of VCCEdge Data
Page 7
Investments – Q3 Sector Cut
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
39
79
235
302
544
544
684
1,354
2,254
2,590
Pharmaceuticals
Food and Agriculture
Technology
Infrastructure
Healthcare
Power and utilities
RCP
Financial services
RHC
Ecommerce
Top Sectors US$m3Q2017
3Q2016
5
2
1
5
10
17
5
20
24
13
3
3
5
12
13
13
14
18
24
25
Pharmaceuticals
Infrastructure
Power and utilities
RCP
Healthcare
RHC
Food and Agriculture
Ecommerce
Technology
Financial services
Top Sectors #
EY Analysis of VCCEdge Data
Page 8
Top Investments
Top Investments in 3Q2017
Company PE Investor Sector Stage US$mnStake(%)
Flipkart SoftBank Vision Fund Ecommerce Growth Capital 2,500 30
DLF Cyber City Developers Ltd GIC RHC Growth Capital 1,390 33
Carnival's Chandigarh Property Blackstone RHC Buyout 340 100
Mytrah Energy India Pvt. Ltd Piramal, APG Power and utilities Debt deal 300 NA
Oravel Stays Pvt. Ltd.Sequoia, SoftBank and others
RCPStart-up/ Early Stage
260 NA
RBL Bank Ltd.CDC ABG Capital, Multiples and others
Financial services PIPE Financing 259 8
Karvy Computershare Ltd. General Atlantic. Financial services Buyout 240 83
RBL Bank LtdABG Capital , CDC, Multiples and others
Financial services PIPE Financing 220 NA
Radiant Life Care Pvt. Ltd. KKR Healthcare Growth Capital 200 49
Vini cosmetics pvt. Ltd. Sequoia, Westbridge RCP Growth Capital 172 NA
Flipkart SoftBank Ecommerce Growth Capital 2,500 30
EY Analysis of VCCEdge Data
Page 9
Exits – Q3 Analysis
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
2,046
4,668
3Q2016
3Q2017
Total Exits US$m
64
65
3Q2016
3Q2017
No. of Exits
87
1,217
90
653
1,044
346
382
1,424
1,472
IPO
Buyback
Strategic
Secondary
Open Market
Exit Type US$m
4
20
5
35
6
7
11
9
32
IPO
Buyback
Strategic
Secondary
Open Market
Exit Type #
-
-
510
53
-
334
246
323
367
422
819
1,561
Telecom
Power & Utilities
Technology
Healthcare
Ecommerce
Financial Services
Top Sectors US$m
0
1
5
4
0
15
1
2
6
8
2
12
Telecom
Power & Utilities
Technology
Healthcare
Ecommerce
Financial Services
Top Sectors #
EY Analysis of VCCEdge Data
Page 10
Top Exits
Top Exits in 3Q2017
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
Company Sector Sellers Buyer Exit Type US$mnStake (%)
Flipkart Ecommerce Tiger GlobalSoftBank Vision Fund
Secondary 800 0
ICICI LombardFinancial Services
Fairfax. NA IPO 558 12
Max Financial Services Ltd.
Financial Services
Goldman Sachs NAOpen Market
358 15
Genpact Ltd. Technology Bain Capital, GIC NAOpen Market
294 5
Mytrah Energy India Pvt. Ltd.
Power & UtilitiesApollo Global, Aion, Goldman Sachs, DFC Alternatives
Piramal, APG Secondary 270 0
Tikona Digital Networks Pvt. Ltd., 4G Business
Telecom IFC, Goldman SachsBharti Airtel Ltd.
Strategic 246 0
AU Small Finance Bank Ltd.
Financial Services
Kedaara, IFC, Warburg Pincus, ChrysCapital
NA IPO 234 21
Phoenix MillsReal Estate, Hospitality & Construction
IL&FS,CPPIB & Others Phoenix Mills Buyback 210 0
Manipal Health Enterprises Pvt. Ltd.
HealthcareTrue North, FaeringCapital
Temasek Secondary 171 18
Matrimony.Com Ltd. E-commerceMayfield, Bessemer and others
NA IPO 156 29
EY Analysis of VCCEdge Data
Page 11
Fund Raise
Top Fund Raise in 3Q2017
Status Fund US$m Strategy Remark
Raised Kedaara 750 sector agnostic Final close of second fund
Raised Morgan Stanley 450 Infrastructure Final close of US$1 billion fund
Raised SAIF 350 Early stage Final close of third fund
Raised Madison India 230 sector agnostic Final close of fourth fund
Raised Motilal Oswal Real Estate 156 Real Estate Final close of third fund
EY Analysis of VCCEdge Data
PE Monthly Roundup – September 2017
Page 13
PE/VC headline trends – Monthly
US$ mn #
388 766 71 646 880 602 550 843 1,383 564 352 2,219 2,096
2218 16
25
15
24 22
32
24
148
33
24
0
10
20
30
40
-
500
1,000
1,500
2,000
2,500
Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17
Exits
290 335 450 191 331 850 106 377 200 232 436 110 16890
2
4
6
8
10
0
500
1000
1500
2000
Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17
Fund Raise
1,231 1,185 927 3,026 1,196 393 2,617 1,920 3,447 1,507 1,470 5,424 1,795
42
60
41
56
43
30
5867
5645 45 50 46
0
20
40
60
80
-
2,000
4,000
6,000
Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17
Investments
EY Analysis of VCCEdge Data
Page 14
Key Trends
► September 2017 recorded 46% increase in value of investments, while in terms of volume the increase was 9.5%
compared to same period last year (US$1.8 billion across 46 deals vs US$1.2 billion across 42 deals in September
2016). However, on a month-on-month basis, there was sharp decline of 67% in value terms due to the two mega
deals recorded in August 2017 of Flipkart and DLF as mentioned above.
► September 2017 recorded over five times increase in value of exits compared to same period last year (US$2 billion
across 24 exits vs US$388 million across 22 exits in September 2016). However, on a month-on-month basis, exits
declined 5% in value terms and 27% in volume terms.
► On a monthly basis September 2017 recorded US$1.7 billion in fund raise.
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
EY Analysis of VCCEdge Data
Page 15
40 (15)128 (9)
206 (6)117 (2)
1302 (7)
<$10Mn $10Mn -$20Mn
$20Mn -$50Mn
$50Mn -$100Mn
>$100Mn
Deal Size US$ mn (Volume)
Investments – US$1.8 bn over 46 deals
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
** Deal value not available on 7 out of 46 deals in Sept 2017
16
26
27
30
125
226
230
300
336
447
Tarvel
Healthcare
Food and Agriculture
Logistics
Technology
Financial services
RHC
Infrastructure
Power and utilities
RCP
Value US$ million
2
2
3
3
4
4
5
5
6
8
Power and utilities
Infrastructure
Food and Agriculture
Business and Prof Services
RHC
Healthcare
RCP
Ecommerce
Technology
Financial services
Volume
692 (16)
435 (23)
51 (2)
300 (2) 315 (3)
Expansion/Growth
Start-up/Early Stage
PIPE Buyout Debt
Deal Stage US$ mn (Volume)
EY Analysis of VCCEdge Data
Page 16
Investments – Monthly sector cut
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
211
68
2509
709
182
383
1640
230
1649
200
356
772
226
708
13
85
125
200
300
150
24
80
91
0 1000 2000 3000 4000 5000 6000
May
Jun
Jul
Aug
Sep
Investment by Sector – US$mn
6
3
9
4
5
4
5
3
6
4
11
12
7
10
8
8
15
8
6
6
2
3
3
3
5
15
5
7
16
10
- 10 20 30 40 50 60
May
Jun
Jul
Aug
Sep
Investment by Sector – No. of Deals
Ecommerce RHC Financial Services Technology Infrastructure RCP Automotive Power & Utilities Others Healthcare
EY Analysis of VCCEdge Data
Page 17
Investments – Monthly (deal size and type)
277
200
200
310
117
2,192
1,069
971
4,716
1,302
May
Jun
Jul
Aug
Sep
Deal Size Trend - Value (US$ mn)
26
20
15
14
15
7
4
6
2
9
10
3
5
9
6
3
3
3
5
2
4
5
6
6
7
5
10
8
10
39
May
Jun
Jul
Aug
Sep
Deal Size Trend - No of Deals
<$10Mn $10Mn - $20Mn $20Mn - $50Mn
$50Mn - $100Mn >$100Mn NA
614
514
4,489
693
168
420
150
435
274
236
189
316
May
Jun
Jul
Aug
Sep
Deal Type Trend - Value
15
8
12
16
16
20
31
24
21
23
5
2
4
2
3
1
2
2
2
12
5
3
3
3
May
Jun
Jul
Aug
Sep
Deal Type Trend - No of Deals
Expansion/ Growth Capital Start-up/ Early StagePIPE Financing BuyoutDebt deal
EY Analysis of VCCEdge Data
Page 18
Top Investments
Top Investments in Sept 2017
Company PE Investor Sector Stage US$mnStake
(%)
Mytrah Energy India Pvt. Ltd Piramal, APG Power and utilities
Debt deal 300 NA
Oravel Stays Pvt. Ltd.Sequoia, Softbank and others
RCPStart-up/ Early Stage
260 NA
Vini cosmetics pvt. Ltd. Sequoia, Westbridge RCP Growth Capital 172 NA
Janalakshmi Financial Services Pvt. Ltd.
TPG, Morgan Stanley and others
Financial services
Growth Capital 161 NA
Simhapuri Expressway Ltd. Brookfield Infrastructure Buyout 150 100
Rayalseema Expressway Ltd. Brookfield Infrastructure Buyout 150 100
Leela Palace Hotel Marigold Capital RHC Growth Capital 109 NA
TVS Emerald ASK Group RHC Growth Capital 62 NA
Apttus IncPremjiInvest , SalesforceVentures and others
Technology Growth Capital 55 NA
Mahindra Lifespace Developers Ltd. IFC RHC PIPE Financing 50 NA
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
EY Analysis of VCCEdge Data
Page 19
Exits – US$2.1 bn across 24 deals in September
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
Exits in Sept
42 (1)
128 (3)
0 (4)
1076 (6)
644 (11)
IPO Buyback Strategic SecondarySale
Open Market
Exits by Type US$mn (Volume)
144 (7)
78 (2)
133 (1)
156 (2)
211 (4)
323 (2)
1048 (6)
Others
RCP
Media & Entertainment
E-commerce
RHC
Power & Utilities
Financial Services
Exits by Sector US$mn (Volume)
EY Analysis of VCCEdge Data
Page 20
Exits – Top Exits
Top Exits in Sept 2017
*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products
Company Sector Sellers Buyer Exit Type US$mnStake (%)
ICICI Lombard General Insurance Company Ltd
Financial Services Fairfax NA IPO 558 12
Max Financial Services Ltd.
Financial Services Goldman Sachs NA Open Market 358 15
Mytrah Energy India Pvt. Ltd.
Power & UtilitiesApollo Global, Aion, Goldman Sachs, and others
Piramal, APG Secondary 270 0
Phoenix MillsReal Estate, Hospitality & Construction
IL&FS,CPPIB & Others
Phoenix Mills Buyback 210 0
Matrimony.Com Ltd. E-commerceMayfield, Bessemer Venture, others
(blank) IPO 156 29
Shop CJ NetworkMedia & Entertainment
Providence HomeShop18 Strategic 133 50
Vini Cosmetics Pvt. Ltd.Retail and Consumer products
Bay Capital Partners Ltd.
Sequoia Capital,Westbridge
Secondary 78 0
Dixon Technologies India Ltd
Power & UtilitiesIndia Business Excellence Fund-I
NA IPO 53 17
Kajaria Ceramics Ltd. Industrial products Westbridge NA Open Market 40 2
Syngene International Ltd.
Healthcare True North NA Open Market 34 2
EY Analysis of VCCEdge Data
Page 21
Fund Raise
Top Fund Raise/Announcements in Sept 2017
Status Fund US$m Strategy Remark
Raised Kedaara 750 sector agnostic Final close of second fund
Raised Morgan Stanley 450 Infrastructure Final close of US$1 billion fund
Raised Madison India 230 sector agnostic Final close of fourth fund
Raised Motilal Oswal Real Estate 156 Real Estate Final close of third fund
EY Analysis of VCCEdge Data
Page 22
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