India Venture Capital and Private Equity Report 2009

Abstract

With Indian economy growing at an average rate of more than 8 percent over the last five years and other macroeconomic factors and policies favorable complementing the growth, India has emerged as an attractive investment destination. Global investors looking for investment opportunities in emerging markets in order to tap the growth potential as well as to diversify and mitigate their risk are getting increasingly attracted to Indian markets. Consequently India’s share on global pool of private equity investments is steadily rising. According to PriceWater Coopers (PWC) Global Private Equity Report 2008, India has taken a few giant strides to move from 14th rank with a share of only 1.5% in 2004 to 3rd rank with a share of 7% in total PE-VC investments worldwide in 2007. Thus, India was the recipient of the highest PE-VC investments in Asia-Pacific region and only behind UK and US worldwide in 2007. In spite of such frenzied action in PE-VC investment arena in India, there are very few rigorous longitudinal studies on the characteristics of PE-VC investments in India. This study is an attempt to explore the trends and developments in PE-VC financing in India through an in-depth analysis of these investments over the last 5 years (2004-2008). This report provides an exhaustive account of PE-VC investments, the lifecycle of the investments and subsequent exits from different perspectives. We feel that the contents of this report will be informative and resourceful for various stakeholders in the PE-VC industry. The report has several interesting insights, which will help the readers in enriching their understanding of PE-VC financing in India.