KONNECT
ADVOCACY IVCA PRIVATE EQUITY -
RESEARCH VENTURE CAPITAL REPORT
EDUCATION
KONNECT 2020
NEW DELHI | MUMBAI | BANGALORE CONTENTS
Executive Summary 03
Private Equity Investments 04
Venture Capital Investments 09
Exits 12
Fund Raising Activity 16 Angel Investments 16 Venture Debt Monitor 17
Investments involving AIFs 18
Appendix & Tables 19
170+ MEMBERS & GROWING.. Executive Summary
Private Equity(1) Investments & Exits
2020 registered 812 Private Equity (PE) investments worth about ₹2.9 Lakh Cr ($39.2 Billion).
The largest PE investment announced was ₹74,743 Cr ($9.9 Billion) investment in Jio Platforms, the holding company of the Reliance Jio telecom platform from various global Private Equity Firms and Sovereign Wealth Funds.
Funds with AIF vehicles participated in 366 investments representing 45% of all investments.
Telecom companies topped the industry table (by value) followed by IT & ITeS companies.
Mumbai topped the chart for most investments in a city (by value).
The year witnessed 147 PE exits that harvested about ₹50,382 Cr ($6.8 Billion).
The largest exit was the ₹7,039 Cr ($951 million) partial exit by Carlyle in publicly listed SBI Cards & Payment Services via an IPO.
India-focused funds raised ₹40,365 Cr across 32 funds.
Venture Capital (1) Investments & Exits
2020 registered 538 deals worth about ₹13,068 Cr ($1.8 Billion).
The largest VC type investments were $20 million investments in Flexiloans, Freshtohome, iMerit Technology Services, Infra.Market, InterviewBit Academy, UniOrbit and Yellow Messenger.
Funds with AIF vehicles participated in 257 investments.
IT & ITES companies topped the industry table (by volume) followed by Healthcare companies.
Bangalore topped the chart for highest investments (by volume) in a city.
The year witnessed 68 VC exits that harvested about ₹8,830 Cr ($1.2 Billion).
Angel Investments
Super Angels and Angel Networks made 341 investments (compared to 275 deals in 2019).
The largest investment involving angel investors was the $110 million (₹816 Cr) Series E investment in Bangalore-based Education startup Unacademy led by a mix of PE and VC investors (including General Atlantic, Nexus Venture Partners, Steadview Capital, Blume Ventures and Sequoia Capital India) with participation from Kalyan Krishnamurthy and Sujeet Kumar. 3 Private Equity Investments
Private Equity Investments in 2020: 812 Deals, $39.2 Billion (₹2.9 Lakh Cr)
Amount($B) Deals
$45 B 1200 1012 $40 B 984 892 1000
$35 B 858 812
$30 B 800
$25 B
600
$20 B
$15 B 400
$10 B
200
$5 B $13.5 B $23.9 B $36.4 B $36.3 B $39.2 B
$ B 0 2016 2017 2018 2019 2020
2020 registered 812 Private Equity (PE) investments worth about ₹2.9 Lakh Cr ($39.2 Billion). The investment value in 2020 is the highest of all time.
The largest PE investment announced was the ₹74,743 Cr ($9.9 Billion) investment by global Private Equity Firms (General Atlantic, TPG Capital, Vista Equity Partners, Silver Lake, L Capital Asia, KKR), Sovereign Wealth Funds (ADIA, Mubadala Investment, Public Investment Fund), and strategic investors (Intel Capital and Qualcomm Ventures) in Jio Platforms, the holding company of the Reliance Jio telecom platform. (Note: This figure excludes the $10.2 Billion in strategic investments by Silicon Valley tech giants Google and Facebook.)
Funds with AIF vehicles participated in 366 PE investments worth ₹1.77 Lakh Cr ($24 Billion). The largest investment by a fund with an AIF vehicle was the investment in Jio Platforms which involved the participation of KKR.
4 Private Equity Investments
By Industry 2019 2020
$4.4 B Telecom $11.2 B $12.4 B IT & ITES $7.5 B $0.2 B Retail $6.7 B $4.9 B Energy $2.9 B $4.2 B BFSI $2.5 B $2.0 B Healthcare $2.5 B
Telecom companies topped the industry chart with investments worth $11.2 Billion, led by the investment in Jio Platforms followed by the 51% acquisition of Reliance Digital Fibre Infrastructure Trust by Public Investment Fund and Abu Dhabi Investment Authority for $1,012 million.
IT & ITeS companies stood second with investments worth $7.5 Billion led by the $603 million investment in food delivery Unicorn Zomato by Bow Wave Capital Management, Luxor Capital, Kora Management, Mirae Asset Global Investments, Baillie Gifford, Steadview Capital, Tiger Global, Temasek and D1 Capital Partners Master LP. This was followed by the $507 million investment by SoftBank Corp in hotel aggregator Oyo Rooms (as part of a round that began in 2019).
Retail companies stood third with investments worth $6.7 Billion led by the $6 Billion investment in Reliance Retail Ventures - from Public Investment Fund, Mubadala Investment, ADIA, Silver Lake, TPG Capital, KKR, GIC and General Atlantic.
5 Private Equity Investments
By Region
2019 2020
$15.0 B Mumbai $24.4 B
$7.9 B NCR Delhi $6.3 B
$5.8 B Bangalore $5.8 B
$1.5 B Chennai $0.6 B
$1.6 B Hyderabad $0.5 B
$1.2 B Pune $0.5 B
$0.1 B Ahmedabad $0.3 B
$3.2 B Others $0.9 B
By Stage
2020 2019
$6.8 B Buyout $12.5 B
$1.0 B PIPE $2.5 B
$11.9 B Late $9.9 B
$16.2 B Growth-PE $7.6 B
$1.8 B VC $2.4 B
6 Private Equity Investments
By Size* 2019 2020
<$5 M 493 358
$5M -10M 109 108
$10M -15M 79 36
$15M-25M 60 41
$25M-50M 78 54
$50M-100M 50 38
$100M+ 73 60 *Deals with announced values Telecom IT & ITeS Amount($M) Deals Amount($M) Deals 12,000 12 14,000 700
10,000 10 12,000 600 10,000 500 8,000 8 8,000 400 6,000 6 6,000 300 4,000 4 4,000 200
2,000 2 2,000 100
0 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Retail Energy Amount($M) Deals Amount($M) Deals 7,000 21 5,000 35
6,000 18 4,000 28 5,000 15
4,000 12 3,000 21
3,000 9 2,000 14 2,000 6 1,000 7 1,000 3
0 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 7 Private Equity Investments
BFSI Healthcare & Lifesciences Amount($M) Deals Amount($M) Deals 7,000 140 3,000 90
6,000 120 2,500 75 5,000 100 2,000 60 4,000 80 1,500 45 3,000 60 1,000 30 2,000 40
1,000 20 500 15
0 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Food & Beverages Education Amount($M) Deals Amount($M) Deals 500 45 1,400 35
1,200 30 400 36 1,000 25 300 27 800 20
200 18 600 15 400 10 100 9 200 5
0 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Manufacturing Engg. & Construction Amount($M) Deals Amount($M) Deals 3,000 42 3,000 24
2,500 35 2,500 20
2,000 28 2,000 16
1,500 21 1,500 12
1,000 14 1,000 8
500 7 500 4
0 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 8 Venture Capital Investments
Venture Capital Investments in 2020: 538 Deals, $1.8 Billion (₹13,068 Cr)
Amount($B) Deals
$3.0 B 628 597 700
554 600 $2.5 B 658
500 $2.0 B 538
400
$1.5 B
300
$1.0 B
200
$0.5 B
100 $1.9 B $1.5 B $1.9 B $2.4 B $1.8 B
$0.0 B 0 2016 2017 2018 2019 2020
In 2020, VC-type investments* recorded 538 deals worth $1.8 Billion (₹13,068 Cr) - 27% lower than last year’s tally of $2.4 Billion (₹16,899 Cr).
The largest VC investments were the $20 million investments in Fintech lender, Flexiloans; online meat grocer, Freshtohome; data annotation company, iMerit Technology Services; online construction materials marketplace, Infra.Market; ed-tech start-up, InterviewBit Academy; fintech firm, UniOrbit and conversational AI platform, Yellow Messenger.
Funds with AIF vehicles participated in 257 VC investments worth $858 million (₹6,366 Cr).
IT & ITeS companies topped the industry charts with 380 deals contributing to 71% of the overall deal count.
Bangalore saw the most number of investments (205 deals), followed by NCR Delhi (147 deals) and Mumbai (90 deals).
345 DPIIT-registered startups raised $948 million (₹7,034 Cr). Among DPIIT registered startups, InterviewBit Academy (from Global Founders Capital, Tiger Global and Sequoia Capital India) and Yellow Messenger (from Lightspeed Ventures) raised $20 million funding.
9 Venture Capital Investments
By Industry 448 2019 2020
380
124 81 33 35 27 26 24 18
IT & ITES Healthcare FMCG Education Others
By Stage
Early Growth 100%
75%
50%
25%
0% 2016 2017 2018 2019 2020
10 Venture Capital Investments
By Deal Size
2019 2020
171 156 133 116 115
83 86 74 54 28 23 17
<$1 M $1-2 M $2-5 M $5-10 M $10-15 M $15M+
By City
2019 2020
218 205 188
147 123 90 81 56
22 21 26 19
Bangalore NCR Delhi Mumbai Pune Chennai Others
11 Private Equity Exits
Private Equity Exits in 2020: 147 Deals, $6.8 Billion (₹50,382 Cr)
Private Equity & Venture Capital Exits Amount($B) Deals
$30 B 347 400
350
$25 B 301
260 300
$20 B 197 250 $15 B 147 200
150
$10 B
100
$5 B
50 $8.9 B $15.0 B $26.1 B $10.5 B $6.8 B
$ B 0 2016 2017 2018 2019 2020
2020 saw 147 PE-VC exits that harvested ₹50,382 Cr ($6.8 Billion).
The largest exit was the ₹7,039 Cr ($951 million) partial exit by Carlyle in publicly listed SBI Cards & Payment Services via an IPO. This was followed by the ₹3,348 complete exit by Everstone from ITeS platform firm Everise, via a secondary sale to Brookfield, realizing a 3x return.
12 Private Equity Exits
PE Exits by Industry
100% Other
90% Telecom 80% Energy 70%
60% Shipping & Logistics
50% Manufacturing 40% Healthcare & Life 30% Sciences 20% IT & ITES
10% BFSI 0% 2016 2017 2018 2019 2020
PE Exits by Return Multiple
2019 2020
52
34
18 15 12 12 14 8 8 10
<1x 1-3x 3-5x 5-10x >10x
13 Private Equity Exits
By Type
2019 2020
$4.3 B
$3.6 B
$2.5 B
$1.8 B $1.7 B $1.7 B $1.4 B
$0.1 B $0.1 B $0.0 B
Secondary Sale Public Market/IPO Strategic Sale Buyback Other
14 Venture Capital Exits
Venture Capital Exits in 2020: 68 Deals, $1.2 Billion (₹8,830 Cr)
Venture Capital Exits Amount($B) Deals
$16.0 B 138
$14.0 B 118
$12.0 B 113 98
$10.0 B 89 88 78 $8.0 B 82
58
$6.0 B 68
38
$4.0 B
18 $2.0 B $1.2 B $1.8 B $2.4 B $14.8 B $2.9 B
$0.0 B -2 2016 2017 2018 2019 2020
2020 witnessed 68 VC exits that harvested $1.2 Billion (about ₹8,830 Cr).
The largest VC exit was the ₹1,061 Cr ($143 million) stake sale in kids coding platform WhiteHat Jr to Edtech unicorn Byjus Classes. The VC investors in WhiteHat – Nexus Venture Partners, Omidyar Network and Owl Ventures - realized returns of 14.42x, 14.13x and 10.56x respectively.
15 Fund Raising Activity
Amount($B) No. of Funds 9 60
8 50 7 50 6 47 40 5 40 39 30 4 32 3 20 2 10 1 $4.8 B $4.3 B $5.8 B $7.7 B $5.4 B 0 0 2016 2017 2018 2019 2020
India-focused funds raised ₹40,365 Cr ($5.4 Billion) across 32 funds in 2020 - a 29% decrease (in value terms) compared to ₹53,921 Cr ($7.7 Billion) across 47 funds in 2019.
Angel Investments Angel Investments
Angel Investments 341 In 2020 super angels and angel networks 297 made 341 investments. 256 275 229 The largest investment involving angel investors was the $110 million (₹816 Cr) Series E investment in Bangalore-based Education startup Unacademy led by a mix of PE and VC investors (including General Atlantic, Nexus Venture Partners, Steadview Capital, Blume 2016 2017 2018 2019 2020 Ventures and Sequoia Capital India) with participation from Kalyan Krishnamurthy and Sujeet Kumar.
16 Venture Debt
Venture Debt Deals
$60 B 56 53
$50 B 42 $40 B 34 31
$30 B
$20 B
$10 B
Angel Investments$ B 2016 2017 2018 2019 2020
17 Appendix - Top Investments involving AIFs in 2020
*Deal value includes share of Non-AIF investors participating in the round.
Company Sector Investors Amount(US$M)
Public Investment Fund, Vista Equity Partners, Mubadala Jio Platforms Mobile Services Investment, ADIA, Silver Lake, L Capital Asia, TPG Capital, 9871 Qualcomm Ventures, KKR, Intel Capital, General Atlantic
Public Investment Fund, Mubadala Investment, ADIA, Reliance Retail Ventures Apparel & Accessories 6444 Silver Lake, TPG Capital, KKR, GIC, General Atlantic
Bow Wave Capital Management, Luxor Capital, Kora Online Services (Local Search - Zomato Management, Mirae Asset Global Investments, Baillie 603 Restaurants) Gifford, Steadview Capital, Tiger Global, Temasek, Others
RattanIndia Power Power Projects (Multiple Sources) Varde Partners, Goldman Sachs 567
JB Chemicals Pharmaceuticals KKR 414
ECL Finance NBFC SSG Capital, Farallon Capital 401
Ayana Renewable Power Renewable Power Projects (Solar) NIIF, CDC Group, Everstone 390
Essel Group Cruise Ships NIIF 270
RBL Bank Banking CDC Group, Gaja Capital, Baring Asia, Others 209
SP Infra (Solar Assets) Renewable Power Projects (Solar) KKR 204
Online Services (E-Learning & Test SoftBank Corp, IIFL VC, Nexus Venture Partners, Sequoia Unacademy 153 Preparation) Capital India, General Atlantic, Others
Biocon Biologics Biotech (Biosimilars) Goldman Sachs 150
Online Services (Aggregator - Home Oxford Caps Cerestra Advisors 125 Rentals)
Epiq Capital, Unilever Ventures, Kris Gopalakrishnan, CureFit Wellness (Preventive Healthcare) InnoVen Capital, Ascent Capital, Accel India, Chiratae 111 Ventures, Temasek, Others
XpressBees Logistics Logistics Services (E-Commerce) InvestCorp Group, Norwest, Gaja Capital 110
E-Commerce (Consumer Shopping - Freshtohome OPIC, Iron Pillar, Investment Corporation of Dubai, Others 106 Sea Food)
18 Appendix - Top PE Investments in 2020
Company Sector Investors Amount(US$M)
Public Investment Fund, Vista Equity Partners, Mubadala Investment, ADIA, Silver Lake, L Capital Jio Platforms Mobile Services 9871 Asia, TPG Capital, Qualcomm Ventures, KKR, Intel Capital, General Atlantic Public Investment Fund, Mubadala Investment, Reliance Retail Ventures Apparel & Accessories ADIA, Silver Lake, TPG Capital, KKR, GIC, General 6444 Atlantic
Reliance Digital Fibre Infrastructure Telecom Infrastructure (Fibre Optics) Public Investment Fund, ADIA 1012 Trust
Piramal Glass Packaging (Glass) Blackstone 1000
Bow Wave Capital Management, Luxor Capital, Online Services (Local Search - Kora Management, Mirae Asset Global Zomato 603 Restaurants) Investments, Baillie Gifford, Steadview Capital, Tiger Global, Temasek, Others
RattanIndia Power Power Projects (Multiple Sources) Varde Partners, Goldman Sachs 567
Chenani Nashri Tunnelway Infrastructure (Roads) I Squared Capital, IFC 528
Online Services (Aggregator - Budget Oyo Rooms SoftBank Corp 507 Hotels)
Renewable Power Projects (Solar, O2 Power EQT, Temasek 500 Wind)
Piramal Pharma Pharmaceuticals Carlyle 490
SBG Cleantech Renewable Power Projects CPPIB 425
JB Chemicals Pharmaceuticals KKR 414
ECL Finance NBFC SSG Capital, Farallon Capital 401
Ayana Renewable Power Renewable Power Projects (Solar) NIIF, CDC Group, Everstone 390
Edelweiss Wealth Management Wealth Management Pacific Alliance Group 300
Byjus Classes Test Preparation Tiger Global 300
Byjus Classes Test Preparation Bond Capital, DST Global, Silver Lake 300
Essel Group Cruise Ships NIIF 270
Ecom Express Logistics Services (E-Commerce) Partners Group 250
Nxtra Data Data Centers Carlyle 235
19 Appendix - Top VC Investments in 2020
Company Sector Investors Amount(US$M)
The Falguni and Sanjay Nayar Family Office, Flexiloans NBFC 20 Sanjay Nayar, Falguni Nayar
E-Commerce (Consumer Shopping - Sea Freshtohome OPIC 20 Food)
Khosla Impact, Michael & Susan Dell iMerit Technology Services IT Services (Artificial Intelligence, NLP) 20 Foundation, Omidyar Network, CDC Group
Foundamental, Sistema Asia Fund, Evolvence Online Services (Marketplace - Construction Infra.Market India, Accel India, Nexus Venture Partners, 20 Materials) Tiger Global
Global Founders Capital, Tiger Global, InterviewBit Academy Online Services (Education - Vocational) 20 Sequoia Capital India, Others
UniOrbit Online Services (Lending - SME Loans) Accel India, Lightspeed Ventures 20
Enterprise Software (Artificial Intelligence - Yellow Messenger Lightspeed Ventures, Others 20 Bots)
OnsiteGo After Sales Services (Electronics) Accel USA, Avendus PE, Accel India, Others 19
Sharrp Ventures, Fireside Ventures, Stellaris Mamaearth Personal Care 18 Venture Partners, Sequoia Capital India
Enterprise Software (Programming Tools - Rebright Partners, Nexus Venture Partners, Jiffy.ai 18 Robotic Process Automation) Others
20 Appendix – Top PE-VC Exits in 2020
Company Sector Exiting Investor Acquirer Deal Amount (US$M)
SBI Cards & Payment Services Payment Services Carlyle NA 951
Everise BPO (CRM) Everstone Brookfield 450
Telecom Infrastructure Bharti Infratel Providence NA 255 (Towers)
Packaging (Tubes & Essel Propack Blackstone NA 253 Laminates)
Consumer Durables Crompton Greaves Consumer (Household Electrical Temasek, Advent International NA 220 Electricals Appliances)
Banking (Small Finance AU Small Finance Bank Warburg Pincus NA 173 Bank)
Online Services (E-Learning - Nexus Venture Partners, Omidyar WhiteHat Jr Byjus Classes 143 Coding for Kids) Network, Owl Ventures
Intas Pharmaceuticals Pharmaceuticals Capital International ChrysCapital 132
Banking (Small Finance AU Small Finance Bank IFC, ChrysCapital NA 124 Bank)
NIIT Technologies IT Services (GIS) Baring Asia NA 119
21 Appendix - Top DPIIT Startups 2020
Company Sector Investor Amount (US$M)
Online Services (Aggregator - Oyo Rooms SoftBank Corp 507 Budget Hotels)
SoftBank Corp, IIFL VC, Nexus Venture Online Services (E-Learning & Test Unacademy Partners, Sequoia Capital India, General 153 Preparation) Atlantic, Others
Online Services (Aggregator - Oxford Caps Cerestra Advisors 125 Home Rentals)
Steadview Capital, Blume Ventures, Nexus Online Services (E-Learning & Test Unacademy Venture Partners, Sequoia Capital India, 104 Preparation) General Atlantic, Others
GGV Capital, Coatue Management, Vedantu Online Services (Remote Tutoring) WestBridge, Omidyar Network, Tiger Global, 100 Others
B Capital Group, Falcon Edge Capital, Omidyar Network, Maverick Capital, Bounce Scooter Rentals 99 Qualcomm Ventures, Accel India, Chiratae Ventures, Sequoia Capital India, Others
Coatue Management, Ribbit Capital, BharatPe Online Services (Payments - UPI) Steadview Capital, Insight Venture Partners, 74 Others
Intact Ventures, RPS Ventures, Amazon, Acko Insurance - General 60 Others
GGV Capital, KB Investment, Tanglin Venture Online Services (Lending - Gold Rupeek Partners, Bertelsmann India Investments, 60 Loans) Others
Mirae Asset Global Investments, Trifecta Zolo Aggregator (Home Rentals) Capital, InvestCorp Group, Nexus Venture 56 Partners
22 Appendix - Definitions of Stages Used
Venture Capital:
Early Stage
First / Second Round of institutional investments into companies that are: Less than five years old, AND Not part of a larger business group, AND Investment amount is less than $20 M
Growth Stage:
Third / Fourth Round funding of institutional investments OR First/Second Round of institutional investments for companies that are >5 years old and <10 years old OR spin-outs from larger businesses, AND Investment amount is less than $20 M
Private Equity:
PE investment figures in this Report include Venture Capital (VC) type investments, but exclude PE investments in Real Estate.
Growth-PE:
First-to-Fourth Round Investments >$20 M into companies <10 years old, OR Fifth / Sixth rounds of institutional investments into companies <10 years old
Late Stage:
Investment into companies that are over 10 years old, OR Seventh or later rounds of institutional investments
PIPEs:
PE investments in publicly-listed companies via preferential allotments / private placements, Acquisition of shares by PE firms via the secondary market
Buyout:
Acquisition of controlling stake via purchase of stakes of existing shareholders
23 About Knowledge Partner
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