Private equity and venture capital investments in India have made a powerful comeback in the first quarter of 2021 as compared to a year ago in the same quarter. Led by Zomato, Dream11, Byju’s, among others, the quarter witnessed $11.85 billion investment, up by 85% from Q1 of 2020. However, the number of deals has contracted by 21%, that is,199 from 244 in the same period. Similarly, the deal value was higher at 58 percent in Q1 2021 from $7.7 billion in Q4 2020 while deal volume was down 19 % from 237 in the previous quarter.
The investors are readily investing in hi-tech start-ups Q1 2021 onwards on the back of $400 million and above rounds of investments attracted by Zomato, Byju’s, and Dream11. While Zomato had raised $500 million, Byju’s secured $460 million, and Dream11 secured $400 million, respectively. Moreover, 18 private equity investments during the quarter were worth $100 million or more in comparison to 14 such deals during the year-ago period.
While the economy has taken a hit during the pandemic, investment recovery is on the cards.