With the mega investments in Reliance Jio coming to a pause, PE-VC investments in July-September 2020 (Q2FY21) - $7.0 billion across 168 deals - fell 48% compared to the immediate previous quarter (which saw $13.6 billion across a similar number of deals) and 33% compared to the same period last year ($10.5 billion across 232 deals).
Apart from the investments in Reliance Group, top investments in Q2FY21 include the stressed assets investment by Varde Partners and Goldman Sachs in coal-based power plant operator RattanIndia Power ($567 million), the coming through of the $507 million investment in Oyo Rooms from SoftBank (as a part of its ongoing $1.5 billion round), and the $500 million investment by EQT and Temasek in renewable energy platform O2 Power.
investments fell 18% in value (and 26% by volume) in the nine months ended September 2020 ($6.5 billion across 438 deals) compared to the same period last year ($7.9 billion in 594 deals). The latest quarter however showed green shoots in the VC segment with both foreign (especially US headquartered funds) and India-dedicated funds venturing out to invest $2 billion across 137 deals - up from the $1.4 billion across 134 deals in the immediate previous quarter. (*Venture Capital is defined as investments in startups less than ten years old.)
Led by Jio, Telecom accounted for $10.2 billion of the investment pie during the first nine months of 2020. Bharti Airtel’s data center focused subsidiary Nxtra Data and smartphone manufacturer Lava International chipped in with $235 million and $90 million, respectively.
IT & ITeS companies came in next, attracting $5.2 billion - a 43% fall from the $9.1 billion raised during the same period last year. The industry however witnessed a slew of big ticket investments in the latest quarter - including Zomato’s $250 million investment from Kora Management, Tiger Global and Temasek and fantasy sports platform Dream11’s $225 million raise from TPG Capital, Tiger Global, ChrysCapital and other investors. The SoftBank led $150 million investment in Edtech platform Unacademy created India’s 31st Unicorn and the fourth Unicorn startup minted this year (following Pine Labs, Nykaa and Postman).
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