Welcome to our first of a series of reports on the private equity transactions activity for impact investing in India. In this report, we seek to summarize and provide insights on the trends we’re seeing as active day-to-day participants in this market.
Our intention is to help share knowledge and be a helpful resource for private equity investors and impact businesses seeking to expand their operations and impact on the BoP in India. With our first report, we are starting with a look back on 2013. We then plan to release quarterly update reports.
In 2013, impact equity investing continued to be an important component of the India private equity landscape comprising 23% of the overall private equity transactions in India. These investments were spread over 80 deals and totaled a quantum of US$ 390 mn.
Some of the key trends in impact equity investing in 2013 included:
- Most investments were in early-stage impact businesses reflecting the youth of this sector;
- Financial services continued to be the leading sector with 22 transactions in 2013;
- Strong showing for agri-business and healthcare with 17 and 13 transactions respectively;
- Significant growth of seed-stage and micro-seed stage investments priming the pump for more investing activity in 2014;
- Participation of new global investors and raising of rupee capital for impact businesses demonstrating growing appeal for investment in impact businesses;
- Some significant exits that will help attract even more investment interest in the impact investing sector.
All of this brings good momentum into 2014 which we expect to be somewhat tumultuous in the first half as the expected Indian national elections transpire. Despite this, we expect to see a 30% increase in India impact investing transactions in 2014.
Full report attached: India Impact Equity Investment Report 2013