After witnessing a tough 2012, the private equity industry, ended the first three months on 2013 with a thud.
Total investments made were worth Rs 5,228 crore across 66 deals, fall of 56% in value terms compared to the same period last year. When compared to the last three months 2012, the dip was 18% in value terms, says the latest PwC’s MoneyTree India Report with data provided by Venture Intelligence.
“This quarter the trend has changed from deal making to successful exits. Most PE firms have become very selective on doing the deals and are going for small-to-moderate sized investments,” said Mahendar Swarup, president, Indian Venture Capital Association.
Analysts claim the slide in deal volumes indicates that the confidence of investors is yet to return post the regulatory and tax concerns caused by the government.
“We have seen a marked drop in the investments, which can be attributed to the uncertain macro-economic environment. Most of the players in the online services segment, which typically attracts most investments, continue to struggle to turn cash positive,” said Sanjay Dhawan, Leader, Technology, PwC.