Equity Funding (Trend-2022)
Sectors In which Equity Funding Increased
Technology
Healthcare
FinTech
Defence
Food
EV
Ecommerce
Key Drivers of Equity Investments
- Increased funding for startups across various sectors
- Rise of unicorn companies (startups valued at $1 billion or more)
- Growing interest from foreign investors
- Fintech and e-commerce sectors dominate equity funding
- Government initiatives to support startups and attract investments
- Rapid digital adoption and increased internet penetration driving investments
- Secondary market activity with investors buying and selling shares of private companies
- Established companies actively raising funds through IPOs and follow-on offerings
- Focus on social impact and sustainability leading to funding in sectors like renewable energy, healthcare, and education
Latest Equity Funding Trends
in INDIA
Here is trend analysis on how investments are growing fastly in India.
Here is trend analysis on Sectoral investments in India.
Reference – https://www.bain.com/insights/india-private-equity-report-2023/
Investment in Healthcare in 2022 Post- Pandemic
Reference: bain.com
Investors showing growing interest in India's healthcare sector for steady returns despite market fluctuations.
Health providers, pharmaceuticals, diagnostics, and single-specialty providers gaining increased attention since 2020.
Healthcare deals in India reached $4.3 billion in 2022, accounting for approximately 8% of total investments.
Healthcare sector's contribution to total exit value expanded to nearly 16% in 2022, reaching $3.5 billion.
2022 marked a year of significant growth and investment in India's healthcare industry.
Investment in BFSI & Fintech
- India’s BFSI (Banking, Financial Services, and Insurance) sector and fintech industry experiencing a resurgence in investor interest.
- BFSI deals amounted to over $5 billion, while fintech deals reached $4 billion in 2022.
- Combined, these sectors constitute 18% of the country’s private equity-venture capital (PE-VC) investments.
- The growth is fuelled by a doubling of overall outstanding credit since 2014, reaching $2 trillion.
- A large untapped credit population, growing middle-class consumption, and openness to credit contribute to sector growth.
- Players’ ability to offer credit through offline and digital expansion further propels the industry’s expansion
Summery Of Deals In 2022
| Category | Value |
|---|---|
| Total No. of Deals | 1,912 |
| Total Deal Value | 45,708.32 $ MN |
| Mean Deal Value | 29.08 $ MN |
| Mean Deal Value | 3.75 $ MN |
| Type of Investment | No of Deals |
|---|---|
| Angel/Seed | 1,074 |
| Venture Capital | 598 |
| Private Equity | 116 |
| Real Estate | 8 |
| Pre-IPO | 6 |
| Public Equity | 45 |
| Others | 4 |
| Venture Debt | 61 |
Sectorwise Summery Of Deals
| SECTORS | Volume | Value($MN) |
|---|---|---|
| CONSUMER DISCRETIONARY | 1048 | 20,001 |
| FINANCIALS | 291 | 7,510 |
| CUNSUMER STAPLES | 106 | 6,351 |
| INDUSTRIALS | 169 | 1,780 |
| UTILITIES | 97 | 2,995 |
| HEALTHCARE | 16 | 1,992 |
| MATERIALS | 160 | 4,208 |
| ENERGY | 20 | 831 |
| TELECOMMUNICATION | 1 | 7 |
| Others | 4 | 31 |
Sectorwise Private Equity Funding
| NAME OF THE COMPANY (Target) | SECTORS | DATE OF FUNDING | TYPE OF FUNDING | DEAL VALUE ($MN) |
|---|---|---|---|---|
| Micro Life Science Pvt. Ltd. | Health Care | Jan-22 | Private Equity | 210.00 |
| Avra Laboratories Pvt. Ltd. | Health Care | Jan-22 | Private Equity | 100.00 |
| Medall Healthcare Pvt. Ltd. | Health Care | Feb-22 | Private Equity | 50.00 |
| Genworks Health PM. Ltd. | Health Care | Feb-22 | Private Equity | 14.56 |
| Asia Healthcare Holdings Advisory LLP | Health Care | Feb-22 | Private Equity | 170.00 |
| Pine Labs Pvt. Ltd. | FinTech | Feb-22 | Private Equity | 150.00 |
| Paradise Food Court Pvt. Ltd. | FoodTech | Feb-22 | Private Equity | 75.00 |
| RapiPay Fintech Pvt Ltd | FinTech | Feb-22 | Private Equity | 15.00 |
| Malladi Drugs and Pharmaceuticals Ltd | Health Care | Mar-22 | Private Equity | 32.70 |
| NA Sportz Interactive Pvt. Ltd. | IT | Mar-22 | Private Equity | 45.2 |
| Accretive CleanTech Pvt. Ltd | FinTech | Mar-22 | Private Equity | 35.00 |
| Zio Technologies Pvt. Ltd. | FinTech | Apr-22 | Private Equity | 15.94 |
| Edument Consultancy Pvt. Ltd. | Health Care | May-22 | Private Equity | 250.00 |
| Tap Smart Data Information Services Pvt. Ltd. | IT | May-22 | Private Equity | 0.42 |
| CitiusTech Healthcare Technology Pvt. Ltd. | FinTech | May-22 | Private Equity | 1.96 |
| Happily Unmarried Marketing Pvt. Ltd. | Health Care | May-22 | Private Equity | 960.00 |
| Ecom Express Ltd. | Ecommerce | Aug-22 | Private Equity | 2.10 |
| Krazybee Services Pvt. Ltd. | IT | Sep-22 | Private Equity | 39.00 |
| Gogii Technologies Pvt. Ltd. | FinTech | Nov-22 | Private Equity | 49.35 |
| PhonePe Pvt Ltd | Health Care | Nov-22 | Private Equity | 0.15 |
| Pine Labs Pvt. Ltd. | FinTech | Dec-22 | Private Equity | 650.00 |
"In 2022 many Private Equity Funding has been done in different sectors, which shows increasing trends in funding depends on Valuation of Companies"
| SECTORS | DEAL VALUE($MN) |
|---|---|
| Health Care | 1787.41 |
| FinTech | 917.25 |
| Food | 75.00 |
| IT | 84.62 |
| Ecommerce | 2.10 |
Equity Funding & Investors
Angel investing and venture capital funding are surging in the Indian equity funding landscape, supporting early-stage startups.
Crowdfunding platforms are gaining popularity, allowing individuals to invest in promising ventures.
Impact investing is on the rise, with investors seeking both financial returns and positive social or environmental impact.
Equity funding has become a vital source of capital for startups in India, fostering a thriving ecosystem.
Diverse funding options offer opportunities but require entrepreneurs and investors to navigate challenges.
Understanding dynamics and staying updated with trends helps stakeholders make informed decisions.
Contributing to the growth of India’s equity funding landscape requires seizing opportunities and addressing challenges.
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