Praxis Global Alliance
2020 a Record Year for VC/PE Investments on the Back of Large Investments in Telecom & Retail: Praxis Report on a Y-o-Y Basis, Investments Grew Six Percent
06 Mar 2021
New Delhi, India, March 06, 2021 --(PR.com)-- 2020 has been
a historical year with COVID impacting all geographies and industries. However,
despite COVID, the Indian growth story remains strong. India is expected to be
the third-largest economy by 2030 with a GDP of US$ 7 trillion in 2030. It has
seen robust activity both in public and private markets.
According to Praxis Global Alliance, a global management
consulting and advisory firm’s annual deals pulse report, 2020 recorded VC/PE
investments worth US$ 41 billion across 831 deals. The surge in deal value was
primarily supported by telecom and retail segments with Reliance Jio and
Reliance Retail alone receiving US$ 16 billion VC/PE investment.
The first-of-its-kind research report "India
Investments Pulse 2020" is supported by rich insights from 125+ VC/PE
investors on the evolution of the VC/PE ecosystem, changes across deal-making,
fundraising, exits as well as their overall outlook for 2021.
The top 10 takeaways for 2020 from the analysis include:
1. India has a strong macro-economic outlook and has been
resilient during COVID: Expected to be the third-largest economy by 2030
2. Deal activity in public markets remained strong despite
COVID: 43 IPOs, US$ 3.6 billion raised through IPOs, 1.15x growth in benchmark
indices
3. 2020 was a record year for private markets: US$ 41
billion invested across 831 VC/PE deals in 2020 against US$ 39 billion in 2019
4. While telecom and retail received the highest funding in
2020, investors expect technology & internet (consumer apps), healthcare
& life sciences, and SAAS/cloud/AI/analytics to become more attractive in
the next few years
5. Reliance Jio and Reliance Retail were the top-funded
companies receiving US$ 16 billion of VC/PE investment (US$ 26 billion of total
private investment)
6. 2020 saw lower exit activity with 148 exits worth US$ 5.1
billion in 2020, down from 197 exits worth US$ 9.2 billion in 2019
7. Fundraising activity in 2020 remained lukewarm with US$
5.4 billion raised in 2020 against US$ 7.6 billion in 2019, as a result, VC/PE
dry powder stood at US$ 9.7 billion at the end of 2020 against US$ 12.2 billion
in 2019
8. Investors have an optimistic outlook for the VC/PE
environment in 2021 ? More than 60 percent of investors expect the overall
VC/PE scenario across fundraising, deal activity at different stages, and exits
to improve in 2021
9. 50+ international and 20+ Indian investors made their
first Indian VC/PE investment in 2020
10. India added 14 unicorns in 2020 alone and is home to 37
active unicorns as of December 2020
Madhur Singhal, Managing Partner and CEO, Praxis Global
Alliance shared, “Indian private market is going strong with a record
investment of US$ 41 billion in 2020 despite COVID. India’s private equity and
venture capital landscape has truly matured and has proven resilient in fueling
India’s economic growth. This India Investments Pulse 2020 report is the most
comprehensive analysis of trends in the VC/PE landscape as this also includes
insights from 125+ VC/PE investors. We are committed to partner with industry
participants, policymakers, entrepreneurs, and strategic acquirers to serve
this space in a differentiated manner.”
This report is intended to provide industry stakeholders
(VC/PE funds, business leaders, entrepreneurs, and policymakers) an overall
perspective on Indian private market investments in 2020. In this report, the
authors have discussed how the Indian macro-economic outlook is expected to
evolve. They have conducted an in-depth analysis of the various trends in
Indian VC/PE deal-making including sectoral, deal size, and stage distribution.
About Praxis:?Praxis Global Alliance is the next-gen
management consulting and business research services firm revolutionizing the
way consulting projects are delivered. It delivers practical solutions to the
toughest business problems by uniquely combining domain practitioner expertise,
AI-led research approaches, and digital technologies. The company operates four
business units including Praxis Global Alliance Financial Investor Group (FIG)
offering pre-deal support, commercial due diligence, post-acquisition value
creation, Praxis Global Alliance Business Enablement and Transformation (BET)
for practitioner-led business advisory and consulting, PGA Labs focused on
technology-led business and market research and tools, and PraxDigital™
delivering data engineering & analytics, AI, OpenData and visualization
solutions to clients across verticals. Present in 4 locations in India and
Singapore, Praxis Global Alliance works with C-suite to the front-line
executives across business streams helping them with end-to-end business
enablement, organizational transformation, and revenue maximization support in
an agile environment.?
For more details please visit:?http://www.praxisga.com/?
About PGA Pulse: We at PGA Pulse, closely monitor trends in
the key sectors that are driving the growth of the Indian economy. We maintain
multiple databases, trackers, and dashboards to follow and keep tabs on the
critical metrics including customer acquisition, user engagement, user
feedback, value chain margins, profitability.
Our clients use our capabilities to generate competitive/market
insights for the sectors they operate in, sectors they want to expand to, or
the sectors of interest for their portfolio companies.