PE/VC offers recorded a 13% year-on-year decrease in January

Chennai: PE and VC investors invested $ 1.97 billion in companies in January, down 13%, because VC funds were cautious in the initial agreements and PE investors took a break from the infra agreements , which dominated the scene in 2019. In January 2019, the investments were $ 2.24 billion.

“Taking into account risk funds, there is a clear sign of caution, while subsequent deals - series C and above - are witnesses of vigorous activity. Indian investors are reflecting the cautious behavior of their global counterparts, which began adjusting their pockets once the performance of Softbank's investee companies declined. Only well-established models are attracting interest, ”said Arun Natarajan, MD, Venture Intelligence.

He added that the PE agreements are experiencing a fall because the fund houses that had injected record funds in 2019 in the infrastructure sector have taken a short break. In particular, infra offers were absent from the list of the 5 main investments.

The outputs, on the other hand, saw an increase in value, although they decreased in number. During January 10, there were outflows worth $ 821 million, while last year there were 16 outlets for $ 301 million. The main outputs include some investments in Byjus with $ 200 million and Narayana Health with $ 39 million. The outstanding offers in the PE and VC space include Varde Partners and Goldmann Sachs that contributed $ 567 million in RattanIndia Power, the Bytech edtech platform that raised $ 200 million from Tiger Global and Zomato seeing $ 150 million from Alibaba. Among the venture capital offers, InterviewBit and Mamaearth registered the highest with $ 20 million and $ 18 million respectively

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