Private equity investment in India forecast to grow to USD 12 billion in 2014, double last year’s total, according to news reports in the Indian press (such as India Times).
The source of the doubling of PE forecast was the IVCA. The money-in figure for the first half of this year was USD 5.48 billion and exits totaled USD 1.364, according to PwC Money Tree (see graphic below).
It also said that valuations ballooned in early stage tech deals for hot startups like Flipkart and SnapDeal. Your DealMarket editor points out that investment may be up but exit activity actually decreased by 12 percent in volume in the second quarter, according to PwC, and is down year to date compared to the same period last year (see graphic above).
So the driver of the increase in PE volume is not necessarily based on a huge inflow to PE investors. The papers say the increased activity is on the back of government changes in the region. (Image source: PwC MoneyTree)