Moneytree India Report q4 2015

www.pwc.
com/globalmoneytree
www.pwc.in
PricewaterhouseCoopers India Pvt Ltd
MoneyTreeTM India Report

Q4 2015
Data provided by Venture Intelligence
Technology Institute
This special report
provides summary results of
Q4 14, Q3 15 and Q4 15.
Table of contents
1. Overview
2
A big year for Indian private equity!
Analysis of PE investments
Total equity investments
Investments by industry
Investments by stage of development
Investments by region
Top 20 PE deals
3. Analysis of PE exits
PwC MoneyTreeTM India Report Q4 15
10
Total PE exits
10
Exits by industry
11
Exits by type
12
Top five PE exits
13
4. Active PE firms
14
5. Sector focus: IT & ITeS sector
15
Technology sector analysis
15
Total PE investments
16
18
19
Investments by subsector
20
PE exits in the sector
21
6. Definitions
22
Contacts
23
1. Overview
A big year for Indian private equity!
The year 2015 was the best year ever for private equity (PE) investing in India,
with record investments as well as exits. It saw investments worth 19.5 billion
USD in 730 deals and exits worth 8.7 billion USD in 230 deals.
Around 40% of the total investments were contributed by the technology
sector (IT & ITeS), with total investments in that sector amounting to 7.6
billion USD. The surge in the tech sector was largely due to the increased
interest in e-commerce, which saw deals worth approximately 5.4 billion USD.
Other sectors that contributed substantially to this investment surge are
financial services (2.4 billion USD), healthcare (1.6 billion USD) and
energy (1.5 billion USD).
Early-stage deals and growth capital continued to contribute significant deal
volumes; however, a substantial amount of investments9.2 billion USD
across 143 dealswere late-stage growth/buyouts. This includes investments
in some e-commerce businesses which have evolved sufficiently.
The year saw exits worth 8.7 billion USD, which was more than double the
exits in the previous year (4 billion USD) and over 50% higher than 2010,
which was the best exit year prior to 2015 (2010 saw 6.3 billion USD in exits).
It must also be noted that almost a quarter of the exits came by way of
secondary sales, which were mostly early/growth investments bought by latestage investors.
The last quarter of the year witnessed investments of 3.94 billion USD in 159
deals. The major contributor here was again the technology sector, attracting
1.26 billion USD in 93 deals. Interestingly, e-commerce did not play a big part
in the last quarter.
Considering the levels of PE activity in 2015, it may be natural to assume that

the momentum will continue in 2016. However, e-commerce fundraising
slowed down at the tail end of the year and this will test the depth of the
market in 2016. While financial services, technology and healthcare continue
to see sustained activity (which could lead them to even better their 2015
numbers), the same cannot be said for consumer, industrials
and infrastructure.
The Indian governments focus on making it easier for foreign investors to do
business in India will help from a perception standpoint and needs to be
backed by real reform. Indias macros are looking good, with the current
account and fiscal deficit at acceptable levels, a relatively stable rupee,
inflation at below 5% and, most importantly, a declining interest rate regime.
This should encourage private investment as demand picks up.
All in all, 2015 was a good year for PE investing in India, and the momentum
seems to be extending into 2016. An enabling regulatory regime and a
facilitating business environment will help both the seekers and providers of
capital and the government is keen to provide a platform. This will spur
investments in India in a bigger way than 2015 and, hopefully, result in
another record year for 2016.
Sanjeev Krishan
Leader, Private Equity and Transaction Services
PwC India
2. Analysis of PE investments
Total equity investments in PE-backed
companies
The last quarter of 2015 provided a strong finish to
the year, making it the best year for Indian private
equity (PE) in history. The fourth quarter of 2015
saw investments worth 3.9 billion USD, a 40% drop
as compared to the previous quarter and a 12%
drop as compared to the year-ago period. Despite
the drop, the stellar performance throughout the
whole year helped 2015 to become the best year
ever, with a total of 19.5 billion USD worth of
PE inflow.
Regionally, Mumbai attracted 1.9 billion USD, while Bangalore was a distant second with investments
worth 733 million USD.
Total private equity investments
5,403
5000
4,848
4,577
4,465
4,273
4,026
3,952
3,825
4000
3,172
2,729
3000
2,581
2,578
2,164
The information technology & IT-enabled services

(IT & ITeS) sector continued to be the biggest
sector, though its performance was comparatively
low compared to the previous quarter. IT & ITeS
attracted 1.3 billion USD in 93 deals, which is down
52% compared to the year-ago period and down
67% compared to the previous quarter.
Late-stage investments have continued their

outstanding performance with 1.7 billion USD,
while growth stage deals attracted 1.2 billion USD.
5,710
6000
Q4 saw 159 deals, while Q3 15 witnessed 203 deals

(6.6 billion USD). As compared to this, the last
quarter of 2014 had 146 deals worth 4.5 billion
USD.
The banking, financial services & insurance (BFSI)

sector attracted 910 million USD in 10 deals. But
the media & entertainment sector was a surprise,
attracting investments worth 414 million USD.
Valueofdeals(inUS$Mn)
6,601
7000
2000
2,128
2,006
1,384
755
510
2,456
2,348
2,314
2,882
2,565
2,165
1,948
1,196
1,790
855
923
729
576
351
197
248
1000
2,397
2,114 2,198
1,749
3,941
3,266
1,853
865
1,384
1,571
1,299
814
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Quarters
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Number
of deals
21
23
22
40
44
42
47
64
101 89
108 99
118 96
140 179 167 109 135 86
81
50
72
103 100 93
128 106 135 138 152 135 147 133 143 122 120 127 125 111 156 135 136 146 203 165 203 159
Analysis of private equity investments

Investments by industry
Q4 14, Q3 15 and Q4 15
The IT & ITeS sector continued its outstanding
performance and retained its top spot as the
favorite sector for PE players. The sector attracted
1.3 billion USD in 93 deals, a 67% drop as
compared to the previous quarter and a 52% drop
as compared to the year-ago period. In Q3 15, the
sector attracted 3.8 billion USD, whereas in the
year-ago period, it was 2.6 billion USD.
The major deals in the sector included an
investment of 325 million USD in QuEST Global by
Bain and GIC, Blackstones 170 million USD
investment in IBS, and Apax Partners 133-million
deal with Zensar Technologies.
BFSI attracted 910 million USD in 10 deals, which
is almost three times higher than the previous
quarter (311 million USD in 8 deals) and 60%
higher than the year-ago period (570 million USD
in 12 deals). A 295-million-USD investment in
ICICI Prudential by Temasek and PremjiInvest, and
Fairbridges 201-million-USD investment and GAs
173-million-USD investment in India Infoline
powered the sector during Q4 15.
Media & entertainment surprised everyone with
investments worth 414 million USD, one of the
highest in recent years, across just five deals. It saw
just 28 million USD in the previous quarter, while
there were no investments in Q4 14. This was
mainly boosted by 350-million-USD investment in
two deals by KKR (300 million USD in Emerald Media and a 50-million-USD investment in CA Media).
Shipping & logistics is another sector that surprised in this quarter with 403 million USD in investments,
mainly aided by a 175-million-USD investment in Embassy Industrial Park by Warburg Pincus. The
energy sector has attracted 324 million USD, while healthcare and manufacturing underperformed (166
million USD and 27 million USD, respectively).
(in US$ Mn)
2,635
3,769
IT & ITeS
1,263
392
550
324
Energy
Telecom
500
570
BFSI
311
910
69
358
Manufacturing
27
108
Q4 2014
311
166
117
192
130
27
164
103
95
315
90
58
40
39
Healthcare & life sciences

Food & beverages
Agri-business
Engineering & construction
Fast-moving consumer goods (FMCG)
Media & entertainment
28
Others
64
Q3 2015
Q4 2015
414
395
475
0
Note: Others include other services, hotels &

resorts, sports & fitness, agribusiness and retail.
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Bharti Gupta Ramola

Leader, Financial Services Industry, PwC India
With the governments and the Reserve Bank of Indias focus on banking for
the unbanked, and possibilities created by technology and mobility, there is
tremendous potential for products and services that can target specific
segments and improve access to financial services across the board. The
insurance sector has also seen considerable activity after the government
allowed foreign companies to increase their stake to 49%. Investors are
bullish on the Indian growth story and opportunities to provide services and
products in this exciting market.
Sandeep Ladda
Leader, Technology Industry, PwC India
The IT sector continued its strong performance and
emerged as the leader both in terms of investment volume
and value; however, the performance of the sector declined
as compared to previous quarters. A majority of the deals
were in the growth and late stages, and Bengaluru continued
to lead the pack regionally. Traditional IT & ITeS segment
companies like QuEST Global, IBS Software Services and
Zensar Technologies dominated the quarter as opposed to
the usual headliners, e-commerce and online services. The ecommerce and online services segments, which had been
flush with cash since late 2014, saw selective investments
flowing in lately and e-commerce companies themselves
have started focussing on profitability by controlling costs
and marketing spends. With several companies shutting
shop and significant lay-offs across the industry, ecommerce and online companies have started functioning
rationally as funding is expected to get tougher in 2016.

Q4 14, Q3 15 and Q4 15
In the last quarter of 2015 late-stage investments

continued to outgrow other types of investment
routes, aggregating 1.7 billion USD in 23 deals.
Growth-stage deals attracted 1.2 billion USD in 34
deals. Interestingly, buyouts dropped to the fifth
position, with investments worth only 173 million
USD, below public market deals (494 million USD)
and early-stage deals (299 million USD).

(in US$ Mn)
132
Early
408
299
912
Growth
1,620
1,238
2,961
Late
2,391
1,737
Q4 2015
6
13
Pre-IPO
Q3 2015
Q4 2014
309
371
PIPE
494
146
Buyout
1,714
173
Other
85
0
500
1,000
1,500
2,000
2,500
3,000
Note: Definitions for the stage of development

categories can be found in the definitions
section of this report.
Growth stage in the above graph includes both
growth and growth-PE stages.

Q4 14, Q3 15 and Q4 15
Mumbai attracted the highest investment in terms

of geography, with aggregated investments worth
1.9 billion USD in 46 deals. Bangalore slipped to
the second spot by a big margin733 million USD
in 31 deals. NCR saw investments worth 462
million in 37 deals. Other cities such as Pune (222
million USD), Jalgaon (103 million USD) and
Thiruvananthapuram (170 million USD) have also
attracted substantial PE interest in this quarter.
(in US$ Mn)
922
Bangalore
1,829
733
937
Mumbai
1,993
1,909
1,075
NCR
1,253
Q4 2014
462
Q3 2015
294
Hyderabad
Q4 2015
482
72
588
Chennai
154
79
650
Others
829
686
0
Note: NCR includes Delhi, Gurgaon and Noida.
500
1,000
1,500
2,000
2,500

Top 20 PE deals
Q4 15
The top 20 deals comprised 72% of the total deal

value in Q4 15. This quarter is notable for the
absence of any deals above 400 million USD. The
top five deals together accounted for just 35% of the
total deal value. The average deal value for this
quarter was 24.8 million USD.
Top 20 PE deals in Q4 2015

Company
Industry
Investors
Amount (US$ Mn)
QuEST Global
Emerald Group
IT & ITeS
Bain Capital, GIC
325
KKR
300
ICICI Prudential Life
BFSI
Temasek, PremjiInvest
295
ReNew Wind Power
Energy
Global Environment Fund, Goldman Sachs, ADIA
265
India Infoline
BFSI
Fairbridge Capital
201
Embassy Industrial Parks
Shipping & logistics
Warburg Pincus
175
India Infoline Wealth
BFSI
General Atlantic
173
IBS Software Services
IT & ITeS
Blackstone
170
Zensar Technologies
IT & ITeS
Apax Partners
133
Grofers
Sequoia Capital India, SoftBank, Tiger Global
120
Avendus Capital
BFSI
KKR
115
93
Varun Beverages International
Food & beverages
AION Capital
Ratnakar Bank
BFSI
CDC Group, ADB
77
Cloud Nine
India Value Fund
61
Continental Warehousing Nhava Sheva
IFC
60
Jain Farm Fresh Foods
Agri-business
Mandala Capital
60
Naaptol.com
IT & ITeS
Mitsui PE
52
Dewas-Bhopal Corridor
Engg. & construction
IDFC Alternatives
52
CA Media
KKR
50
Netmeds
IT & ITeS
OrbiMed
50
3. Analysis of PE exits
Total PE exits
Along with investments, 2015 was a strong year for
exits too. Over all four quarters, there was a record
exit of 8.6 billion USD in 230 deals. This is an alltime record, surpassing the exits worth 6.3 billion
USD in 2010.
The fourth quarter of the year saw exits worth 1.5
billion USD in 51 deals, a 12% drop from the
previous quarter (1.8 billion USD in 51 deals), but
recorded a 16% surge as compared to the year-ago
period (1.3 billion USD in 54 deals).
Total PE exits
Value of deals (in US$ Mn)
4,000
3,838
3,500
3,079
3,000
2,500
2,001
1,913
2,000
IT & ITeS emerged as the top sector in terms of exit

value, with investments worth 598 million USD in
13 deals. The manufacturing sector saw exits worth
257 million USD, while telecom, with a single deal
worth 250 million USD, secured the third spot.
Once again, secondary sales picked up the top
position as the preferred exit route, with 696
million USD in nine deals. Further, public market
sales saw 22 deals worth 539 million USD.
1,479
1,514
1,500
1,227
1,189
554 607
574
948
789
801
308
158
179
273
210
1,216 1,238
1,746
1,538
780
1,122
795
706 604
277
370
669
246
500
1,005
973
1,289 1,331
1,324
1,080
948
1,000
1,444
1,597
1,476
431
403
470
448
268
121
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
20
Quarters Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Number
of deals
15
7 10 14 17 18 23 25 21 18 23 32 35 39 38 33 34 15 21 11 17 42 32 31 48 37 44 61 34 33 31 31 46 35 34 37 37 41 22 34 27 61 49 51 61 67 48 51
10
Analysis of PE exits
Exits by industry
Q4 14, Q3 15 and Q4 15
The IT & ITeS sector has done substantially well in

terms of exits, attracting exits worth 598 million
USD across 13 deals. This is six times higher
compared to the previous quarter (98 million USD
across nine deals) and 34% higher compared with
the year-ago period (448 million USD across 15
deals). Manufacturing has secured the second
position with deals worth 257 million USD across
nine deals, which is over five times higher than the
previous quarter (48 million USD across six deals),
but reported a 44% drop compared to the same
quarter last year (459 million USD across
nine deals).
With a single deal, telecom witnessed an exit worth
250 million USD. BFSI secured deals worth 178
million USD (five deals) while exits in healthcare
were worth 169 million USD in eight deals.
Exits by industry
(in US$ Mn)
50
Telecom
575
250
70
BFSI
319
178
7
Energy
75
Q4 2015
Q3 2015
12
118
169
Q4 2014
27
Agri-business
95
12
Engineering &
construction
95
1,154
Others
468
942
Note: Others includes shipping & logistics, other

services, retail, food & beverages and hotels &
resorts.
200
400
600
800
1,000
1,200
1,400
11
Exits by type
Q3 14, Q2 15 and Q3 15
The pick-up in secondary sales is a good sign for

Indian PE investing. In this quarter, secondary
sales were the preferred exit route for PEs with nine
deals worth 696 million USD. Public market sales
witnessed 22 deals worth 539 million USD.
Strategic sales saw 19 deals worth 303 million
USD and there was one buy-back deal in Q4 15.
Exits by type
(in US$ Mn)
125
Buyback
113
0
727
Public
market sale
467
Q4 2014
539
Q3 2015
Q4 2015
282
Secondary
sale
657
696
103
Strategic
sale
509
303
0
200
400
600
800
1,000
1,200
1,400
1,600
12
Top five PE exits
Q4 15
The top five exits comprised 60% of the total exit

value in Q4 15.
Top five PE exits in Q4 2015

Company
Industry
Investors
Deal amount
(US$ Mn)
QuEST Global
IT & ITeS
Warburg Pincus
250
Viom Networks
Telecom
IDFC PE, GIC, Oman Investment

Fund, DB Zwirn, SBI-Macquarie
250
IBS Software Services
IT & ITeS
General Atlantic
170
Zensar Technologies
IT & ITeS
Electra Partners
133
Hero MotoCorp
Manufacturing
Bain Capital
116
13
4. Active PE firms
Based on the volume of deals, Sequoia Capital was
the most active investor of this quarter, with 12
deals. Accel secured nine deals. Ratan Tata made
four investments in this quarter.
* Number of deals includes both single and coinvestments by PE firms. Cases where two or
more firms have invested in a single deal are
accounted for as one deal for each firm.
The most active PE investors in Q4 15 are listed below.

Investors
No. of deals*
Investors
No. of deals*
Sequoia Capital India
12
KKR
Accel India
Lightspeed Ventures
Ratan Tata
Micromax
Kalaari Capital
Nalanda Capital
SAIF
Nexus Venture Partners
Flipkart
Qualcomm Ventures
Paytm
Ru-Net Holdings
Trifecta Capital
Tiger Global
ChrysCapital
Bessemer
Fairbridge Capital
Kae Capital
I Squared Capital
M&S Partners
IDG Ventures India
Mandala Capital
IFC
Matrix Partners India
Apoletto
NEA
Beenos Partners
Parampara Capital
Flipkart
RoundGlass Partners
Foxconn
YourNest
Infosys Innovation Fund
YouWeCan Ventures
InnoVen Capital
14
5. Sector focus
Technology sector analysis
The Indian IT & ITeS industry contribution is expected to touch 9.3% of the
countrys GDP in FY 2016, having exhibited a consistent CAGR of 13.9% from
FY 2009 to FY 2015.
E-commerce is driving the rapid growth of the domestic IT & ITeS industry,
attracting unprecedented levels of global interest and funding. Along with
mobile apps, e-commerce is expected to grow by more than 30% annually.
Digital transformation is creating new imperatives for Indias growth, with
many companies adopting digital technologies (analytics, cloud, mobility,
social media, Internet of Things (IoT)) into their business models. The Indian
technology and services industry is expected to reach revenues of 350 billion
USD by 2025, with 80% of the technology expenditure driven by digital
technologies.
In 2015, sectors such as banking, insurance and telecom saw the stabilization
of their business and opened up their technology spend over the year, thereby
driving the growth of the Indian IT & ITeS industry. The government revealed
some new technology-centric initiatives last yearnamely Digital India and
Start Up Indiato accelerate Indias plunge into the connected digital world.
Incentives include minimum compliance, self-certification, ease of registering

a business, bankruptcy, tax exemptions, a three-year tax holiday on profits
and discounts on registering intellectual property (IP). Apart from boosting
the prospects of emerging companies, there is a lack of seed-stage risk
financing in India and venture debt has been missing in the ecosystem, with
Indian start-ups only using equity as a source of capital. Indian companies are
over-reliant on foreign venture capital and the government needs to offset this
imbalance. The industry is looking forward to the implementation of the new
tax framework for start-ups and to seeing how regulations will be relaxed to
help further smooth operations.
Internet-driven start-ups dominate the entrepreneurial ecosystem today,
leading to disruptive solutions and business models. The governments aim of
making India a digital economy serves as a great opportunity for the industry
to develop innovative technology solutions.
Sandeep Ladda
Technology Leader
PwC India
The Start Up India initiative, launched in January 2016, aims to boost

entrepreneurship in India and provides a wide range of incentives to startups.* India ranks third in technology start-ups and fifth across all start-ups
globally. Over the last few years, the start-up industry has witnessed huge
growth in the country. Start-ups are the centers of innovation and India needs
to address the critical needs of the country in areas like affordable healthcare,
education and financial inclusion by supporting these start-ups and providing
incentives.
* Tech Start-ups in India: A Bright Future, Nasscom, 2015.
15
Sector focus: IT & ITeS
Total PE investments
Technology continues to be the most attractive
sector for investors, with investments worth 1.26
billion USD across 93 deals. This is a 67% decline
compared to the previous quarter and a 52%
decline compared to the year-ago period. In Q3 15,
the sector attracted investments worth 3.8 billion
USD and 2.6 billion USD during the same period in
the previous year.
The major deals in this sector included an
investment of 325 million USD in QuEST Global by
Bain Capital and GIC, Blackstones 170 million USD
investment in IBS, and Apax Partners 133 million
deal with Zensar Technologies.
The overall average deal size has fallen to 13.6
million USD compared to 31.67 million USD in the
previous quarter. In addition, the average deal size
of early-stage deals dipped to 3.4 million USD in
this quarter.
Value of PE investments in IT & ITeS sector

4,000
3,769
3,500
3,000
2,635
2,423
2,500
1,855
2,000
1,568
1,500
1,262
1,037
988 985
850
1,000
791
625
538
366
500
241
63 99 96
217
647
307
233
422
353
515
443
397
311
273
165
151
49 55 93
772
648
555
99 65
106
347
481
303312
181150
111148
0
2004
Quarters
Number of
deals
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
9
11
10
12
12
10
17
28
18
35
21
34
35
35
32
33
27
47
26
24
16
21
21
28
16
36
24
40
47
43
43
47
49
60
40
44
43
48
48
70
61
78
79 110 97 119 93
16
A comparison between the quarter-on-quarter

growth rates of the IT & ITeS PE investments
against the total PE investments during the last
decade shows that funding for this sector is higher
than the total PE funding in most quarters. But this
quarter was different as both total PE investment
and tech investments witnessed a decline of 40%
and 67%, respectively. Given the huge surge in
investment in the previous quarter, this is not
very surprising.
Value of PE investments in the IT & ITeS sector

800%
700%
IT & ITeS investment growth
600%
500%
400%
300%
200%
100%
0%
-100%
-200%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47
Years
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Quarters Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
17

Q4 14, Q3 15 and Q4 15
As with overall investments, late-stage investors

continued their dominance in the IT & ITeS sector,
with investments worth 577 million USD in five
deals. This, however, represents a 64% drop from
the previous quarter and a 70% drop compared to
the year-ago period. The growth stage has seen
investments worth 295 million USD in 15 deals,
while early-stage investors bet on 71 investments
worth 242 million USD.
IT & ITeS investments by stage of development

(in US$ Mn)
52
Buyout
467
0
102
Early
288
242
Q4 2014
471
Growth
Q3 2015
1,382
Q4 2015
295
1,957
Late
1,618
577
53
PIPE
14
148
0
100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000
18

Q4 14, Q3 15 and Q4 15
Bengaluru retained its top spot as the favorite

technology investment destination, attracting 24
deals worth 479 million USD. Mumbai ranked
second with 188 million USD in 18 deals.
Thiruvananthapuram attracted investments worth
170 million USD in a single deal.
IT & ITeS investments by region

(in US$ Mn)
797
Bangalore
1141
479
331
Mumbai
1153
188
872
NCR
919
Q4 2014
147
Q3 2015
464
Chennai
Q4 2015
61
51
Secunderabad
4
171
Others
469
394
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
19

Investments by subsector
Q3 14, Q2 15 and Q3 15
The online services subsector retained the top slot,

with investments worth 364 million USD across 41
deals, followed by BPO services with 325 million
USD across two deals. IT services attracted 303
million USD across two deals.
IT & ITeS investments by subsector
(in US$ Mn)

1,869
Online services
2,557
364
383
405
325
BPO
154
Mobile VAS
398
Q4 2014
86
Q3 2015
81
Enterprise software
Q4 2015
304
16
58
65
IT Services
303
90
39
169
Others
500
1,000
1,500
2,000
2,500
3,000
20

PE exits in the sector
Q4 14, Q3 15 and Q4 15
The IT & ITeS sector witnessed a huge surge in exit

value, six times higher compared to the previous
quarter and 34% higher than the year-ago period.
The sector saw exits worth 598 million USD across
13 deals. There were three secondary sales worth
553 million USD. In the subsectors, IT services saw
two exits worth 303 million USD, while IT products
witnessed a single deal worth 250 million USD.
Total IT & ITeS exits

2,000
1,921
1,719
1,500
1,056
1,000
6
598
612
519
498
500
393
316
261
379
77
81
26
22
2005
2004
Quarters
Number
of deals
154
105 78
67
56
58
29
185
340
225
162
176
93
429
287
2006
19
2007
48
25
12
32 1
2008
2009
156
96
2010
258 225
129
194
181
106
2011
183
10
2012
2013
2014
98
2015
8
3 12
6 11 12
16
8 14 11
4 13
9 11
5 10
14 6
15 16 13
9 13
21
6. Definitions
Stages of development
Early stage: This refers to the first or second

round of institutional investments in companies
that adhere to the following:
Less than 5 years old

Not part of a larger business group
Investment is less than 20 million USD
Third or fourth round funding in companies

that are more than 5 years old and less than 10
years old, or subsidiaries or spin-outs from
larger businesses
Fifth or sixth round of
institutional investments
Late stage: This comprises the following:
Investment in companies that are a decade old

Seventh or later round of
Growth stage: This refers to investments of less

than 20 million USD. Also, investments meeting
the following criteria are considered to be in the
growth stage:
PIPEs: The following constitute PIPEs:
Third or fourth round funding of

First or second round of institutional
investments in companies that are more than 5
years old and less than 10 years old or spinouts from larger businesses
PE investments in publicly listed companies via

preferential allotments or private placements
Acquisition of shares by PE firms via the
secondary market
Buyout: This is an acquisition of controlling stake

via purchase of stakes of existing shareholders.
Growth stage PE: This includes the following:
First or second round of investments worth 20

million USD or more
Buyout large: This includes buyout deals of

100 million USD or more in value.
Other: This includes PE investments in special

purpose vehicles (SPV) or project-level
investments.
Types of PE exits
Buy-back: This includes the purchase of PE or VC
investors equity stakes by either the investee
company or its founders or promoters.
Strategic sale: This includes the sale of PE or VC
investors equity stakes (or the entire investee
company itself) to a third-party company (which is
typically a larger company in the same sector).
Secondary sale: Any purchase of PE or VC
investors equity stakes by another PE or VC
investors constitutes secondary sale.
Public market sale: This includes the sale of PE
or VC investors equity stakes in a listed
company through the public market.
Initial public offering (IPO): This includes the
sale of PE or VC investors equity stake in an
unlisted company through its first public
offering of stock.
22
www.pwc.com/globalmoneytree
www.pwc.in
Contacts
About PwCs Technology Institute
Sanjeev Krishan
Leader, Private Equity and Transaction Services
PwC India
sanjeev.krishan@in.pwc.com
The Technology Institute is PwCs global research network that studies the business of technology and
the technology of business with the purpose of creating thought leadership that offers both fact-based
analysis and experience-based perspectives. Technology Institute insights and viewpoints originate
from active collaboration between our professionals across the globe and their first-hand experiences
working in and with the technology industry.
Sandeep Ladda
Leader, Technology
PwC India
sandeep.ladda@in.pwc.com
This report was researched and written

by the following:
Pradyumna Sahu
Director, Technology
PwC India
pradyumna.sahu@in.pwc.com
Sibi Sathyan
Knowledge Manager, Private Equity
PwC India
sibi.sathyan@in.pwc.com
About PwC
At PwC, our purpose is to build trust in society and solve important problems. Were a network of firms
in 157 countries with more than 208,000 people who are committed to delivering quality in assurance,
advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
www.pwc.com
PricewaterhouseCoopers and Venture Intelligence have taken responsible steps to ensure that the information contained in the
MoneyTreeTM report has been obtained from reliable sources. However, neither of the parties can warrant the ultimate validity of
the data obtained. Results are updated periodically. Therefore, all data is subject to change at any time. Before making any
decision or taking any action, you should consult a competent professional adviser.
2016 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity.
Please see pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for
consultation with professional advisors.

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MoneyTreeTM India Report

A big year for Indian private equity!

Total equity investments

Investments by stage of development

PwC MoneyTreeTM India Report Q4 15

Top five PE exits

5. Sector focus: IT & ITeS sector

Technology sector analysis

Investments by stage of development

PE exits in the sector

PwC MoneyTreeTM India Report Q4 15

Considering the levels of PE activity in 2015, it may be natural to assume that

PwC MoneyTreeTM India Report Q4 15

The information technology & IT-enabled services

Late-stage investments have continued their

Q4 saw 159 deals, while Q3 15 witnessed 203 deals

The banking, financial services & insurance (BFSI)

140 179 167 109 135 86

Data provided by Venture Intelligence

Analysis of private equity investments

Healthcare & life sciences

Note: Others include other services, hotels &

PwC MoneyTreeTM India Report Q4 15

Data provided by Venture Intelligence

Analysis of private equity investments

Bharti Gupta Ramola

PwC MoneyTreeTM India Report Q4 15

Analysis of private equity investments

In the last quarter of 2015 late-stage investments

Investments by stage of development

Data provided by Venture Intelligence

Note: Definitions for the stage of development

PwC MoneyTreeTM India Report Q4 15

Analysis of private equity investments

Mumbai attracted the highest investment in terms

Note: NCR includes Delhi, Gurgaon and Noida.

PwC MoneyTreeTM India Report Q4 15

Data provided by Venture Intelligence

Analysis of private equity investments

The top 20 deals comprised 72% of the total deal

Top 20 PE deals in Q4 2015

Amount (US$ Mn)

Bain Capital, GIC

Media & entertainment

ICICI Prudential Life

ReNew Wind Power

Global Environment Fund, Goldman Sachs, ADIA

Embassy Industrial Parks

Shipping & logistics

India Infoline Wealth

IBS Software Services

Shipping & logistics

Sequoia Capital India, SoftBank, Tiger Global

Varun Beverages International

Food & beverages

CDC Group, ADB

Healthcare & life sciences

India Value Fund

Continental Warehousing Nhava Sheva

Shipping & logistics

Jain Farm Fresh Foods

Engg. & construction