VCCEdge Annual Deal Report 2017: Investment climate waned in 2016 post a strong 2015

[VCCEdge] [News Corp VCCircle] The VCCEdge Annual Deal Report 2017 presents a data-driven holistic view of private equity, venture capital, M&A and public offerings in India, with sector and region-wise analysis. Given below are some highlights from the report. For further information please contact Vijay Prakash Rai [(vijay.prakash@vccircle.com)]. Private Equity Investments In 2016 we saw private equity and venture capital investments fall because of waning enthusiasm after a relatively strong 2015. The past year was characterised by a funding drought - High valuations saw the likes of Flipkart, Snapdeal, Ola, Zomato and InMobi come under investor scrutiny in 2016 and subject to sharp mark-downs by both investors and analysts. The heady run of huge promotional spends, successive rounds of funding at ever-increasing valuations, and crazy traffic growth saw a pause. 2016 was a year where startups, mature businesses, and fund managers took a moment to reflect on the hubris. The value of PE transactions dropped 44%, from $22 billion to $12.3 billion. Transaction activity too went down by 25% to 1,309 deals in 2016, as compared to 1,752 deals in 2015. While total investments dropped this year, Exit and M&A deal values remained buoyant. Private equity investors unlocked $6.8 billion worth of investments across 239 exits in 2016, whereas, M&A deal value hits a five year high- a jump of 2.6 times to $61.4 billion in 2016. Private Equity Exits Private equity investors unlocked $6.8 billion worth of investments across 239 exits in 2016. While total number of exit deals fell from last year, the value unlocked was higher indicating large deal sizes. Deal value increased by 17% compared to last year. M&A exits exceeded the Open market exits this year, both in terms of number and value. M&A exits contributed to 43% of total exit activity and 52% of exit value. Mergers & Acquisitions M&A deals remained robust this year with 1,002 deals, with the corresponding deal value of $61.4 billion, hitting a five year high – a jump of 2.6 times in value from 2015 which saw 995 deals amounting to $23.7 billion. The increase in the deal value can be attributed to the three largest deals worth $27.7 billion. The biggest M&A deal of the year was in the energy sector and involved Russian giant Rosneft. The other top deals involved domestic players in sectors such as Financials, Telecommunication and Industrials. Equity Capital Markets This year has been good for IPOs, as fundraising via IPOs surged to a five-year high with $4.1 billion raised across 93 IPOs when compared to $2.2 billion from 62 IPOs in 2015. Capital raised through IPOs increased by 88% compared to last year, while it dropped for Rights Issue and QIPs by 62% and 81%, respectively. The Equity Capital Market saw IPOs make a stellar comeback, replacing QIPs and Rights Issues as the preferred means for capital raising. VCCEdge is a leading player in providing India-centric financial, deal and company information. The platform has in-depth profiles of private and public companies, deals including private equity, venture capital, M&A, equity capital market issues and debt offerings, key developments, and detailed data on investors and their portfolios. VCCEdge provides information on demand and helps reduce research time, for users including, strategy managers, investors, bankers and consultants. [Download report] For any information on our products, please contact Vijay Prakash Rai (vijay.prakash@vccircle.com, +91-9987526393). [vccircle] A-83, Ground Floor, Sector - 2, Noida - 201301, Phone: 0120-4171111 Mosaic Media Ventures Pvt. Ltd., A-83, Ground Floor, Sector 2, Noida, UP 201301, India [Unsubscribe here]