India Deal Review: PE-VC transactions bounce back in Q3 as startups collect $3.14b

Getty Images Pro via DealStreetAsia

The third quarter of 2020 witnessed a resurgence in deal activity in India after the pandemic-induced lull earlier this year. As much as $3.14 billion was raised across 258 deals in the July-September period, according to DealStreetAsia – Research and Analytics’s latest report.

While the overall deal value more than doubled in Q3, compared to $1.4 billion in Q2, it was only 77.8 per cent of the deal value seen in Q1 ($4.03 billion), the India Deal Review: Q3 2020 report stated.

 

 

In terms of deal count, July-September recorded a 33 per cent quarter-on-quarter increase. (DealStreetAsia started tracking deals from January 2020). 

This was supported by the bumper month of September, where $1.88 billion worth of deals were raised from 92 VC and PE transactions. This is the highest amount raised in a single month so far this year. The second highest was seen in February when $1.5 billion was raised.

Note: The charts do not take into account undisclosed deals

The education and online training industry accounted for the lion’s share of total investments in Q3 at $1.14 billion across 33 transactions. This represents about 36.4 per cent of the total capital raised in the quarter. Leading the pack was Byju’s, which raised $622 million across two rounds. 

The software sector occupied the second slot as 44 companies — the top sector by deal count — collectively bagged $393.2 million in Q3. The largest deal in the space was clocked by Redis Labs ($100 million) in August. 

In the mini-deals space (deals under $10 million), the ten most attractive industries collectively raised $287 million from 105 deals. 

Software, internet and financial services were the top three industries for mini-deals as they clearly benefitted from the widespread COVID-induced lockdowns that necessitated new services and ways of doing business. The three industries together recorded  56 mini-deals worth almost $163.7 million, representing 46.5  per cent of overall deal value for mini-deals.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.