“The better-than-expected economic revival coupled with a spate of deals closed by PE and VC investors in last 3-4 months of 2020 sends a very bullish signal on expected PE/VC investment activity in 2021,” Vivek Soni, partner and national leader of private equity service at Ernst & Young India was quoted as saying in the report.
However, in terms of deal volume 2020 fared less than previous years as it fell 10 per cent to 1,333, the lowest in five years. Majority of the deal activity in 2020 was driven by seed funding and venture capital investment, while private equity deal volume fared poorly.
The merger and acquisition activity in the country greatly benefitted from the over 32 per cent stake sale by Reliance Industries in Jio Platforms and nearly 10 per cent stake sale in Reliance Retail Ventures.
Besides the RIL deals, the other most notable activities were Walmart, Qatar Investment Authority and Tencent Holdings over $1.2 billion investment in Flipkart and the $1 billion acquisition of Piramal Enterprises’ glass business by Blackstone Group.