HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 39
INDIA INDIA RACES TOWARDS USD FIVE TRILLION ECONOMY
India’s mid-market segment completed 106 deals in Q3 2021, almost exactly the same figure as the 105 deals completed in Q2 2021. There was no significant upward movement in quarterly value either, with a total deal value almost USD 11bn compared to USD 10bn in the previous quarter, a rise of only 10%. PE transactions dominated the deal landscape, accounting for about 58% of the overall volume and 61% of the value. With India emerging from the shadows of the second wave of the pandemic and the so-called third wave not evident so far, the Indian economy is well on the way to accelerated recovery and this is being boosted by the success of the Government of India’s vaccination drive. India’s corporates are now starting to reach out to fully vaccinated staff to resume normal office working.
The Government of India’s initiative to make India a manufacturing and export hub through a number of incentive schemes is also prompting multi-national corporations to further invest in India. Corporations are also looking to reduce their dependence on a few countries, making India a large beneficiary in investment terms. The Reserve Bank of India, India’s federal bank, has projected that India’s GDP will grow by 9.5% in 2021, without doubt making it one of the world’s fastest growing economies. However, rising fuel prices may play a role in dampening the predicted growth levels. In 2019, the Government of India envisioned that India would be a USD five trillion economy by 2025, which would make it the world’s third biggest economy. However, the pandemic has inevitably pushed this target back by a few years. With the strong winds of economic recovery and the various Government policy initiatives, it’s expected that the race towards the USD five trillion target will pick up pace again.
BIG PICTURE
• PE transactions dominate Q3 2021 M&A in both volume and value • TMT leads the way in sector activity with edtech deals and fund-raising to the fore • Unicorn boom reflects India’s dynamic start-up ecosystem.
PE/TRADE VOLUME &VALUE
120
14000
12000
100
10000
80
8000
60
6000
40
4000
20
2000
0
0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Trade Volume
PE Volume
Total Value (USD M)
PE Value (USD M)
1 Report by Venture Intelligence
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