PE Funds invest $26.3 billion in India during 2018: Report

Private equity funds in India invested $26.3 billion across 793 deals during 2018, a report said on Tuesday. According to Bain & Company`s `2019 India Private Equity Report`, consumer tech and banking, financial services and insurance (BFSI) remained the largest industry sectors for investment by value.

"While consumer tech investment was still large at $7 billion, it actually shrank from more than $9 billion in 2017," said the report released on Tuesday in partnership with Indian Private Equity & Venture Capital Association (IVCA). "BFSI also remained dominant with almost $5 billion of investments in 2018, driven by a rising class of non-banking financial companies (NBFCs) that continue to flourish in the ecosystem."

As per the report, the market for exits also remained strong, with 265 exits valued at nearly $33 billion in 2018, "signalling investor confidence in the Indian market". "Nearly half of last year`s exit value resulted from the $16 billion sale of Flipkart to Walmart. However, even excluding that, 2018 was one of the best years for exits in the last decade," the report said.

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In addition, the industry raised funds to the tune of $714 billion from investors during the year.

Arpan Sheth, partner, Bain & Company and one of the lead authors of the report, said: "The Indian market signalled investor confidence with the year 2018 proving to be one of the best years for exits in the last decade."

"Considering how India`s economy is poised for growth in the coming year, many more exits are expected during the next few months. Also, with 265 exits valued at nearly $33 billion in 2018, the public market remained the most preferred mode, with strategic exits."