With Indian e-commerce losing sheen among investors, private equity (PE) investments saw a sharp decline in the first six months of the year to $6.2 billion (bn) across 667 deals, says VCCEdge.
Last year, the corresponding period had investments worth $11.9 bn through 776 transactions. Indian PE saw a rebound in 2015 with investments worth $24 bn, crossing a previous high of $21.3 bn in 2007. “A significant quantum of the decline in investments this year is due to slowdown in Indian e-commerce, which is going through a transition,” says Sanjeev Krishan, transactions services and private equity leader at PwC India. E-commerce poster boy Flipkart saw its $15-bn valuation getting slashed 27 per cent early this year by marquee investment bank Morgan Stanley, bringing a cascading effect on Indian infotech start-ups and their fund raising expectations.