Insights into Indian Private Equity Landscape

The state of Indian private equity in 2017 reveals a record-breaking year with significant investments and exits. Key highlights include $13.7 billion invested, 591 deals made, and exits totaling $1.4 billion across 270 deals. Noteworthy exits by size, top industries, and median returns are also discussed, providing valuable insights into the PE-VC landscape.

• Private Equity
• Investments
• Exits
• Indian Market
• Venture Capital

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1. WHAT THE DATA SAYS THE STATE OF INDIAN PRIVATE EQUITY M VARATHA RAJAN RESEARCH & CONTENT MARKETING #ApexPEVCSummit @ventureindia

2. 2017 T H E B I G G E S T Y E A R O N R E C O R D IN OUT $13.7 B INR 87,700 Cr $23.8 B INR 1.5 Lakh Cr 591 Deals 276 Deals

3. 6 Yrs INVESTMENTS Vs. EXITS M O R E M O N E Y H A R V E S T E D T H A N I N V E S T E D $16 B $14 B EXITS (Current Yr) $12 B INVESTMENTS (6 Yrs Prior) $10 B $8 B $6 B $4 B $2 B $0 B 2010 2011 2012 2013 2014 2015 2016 2017

4. PE-VC EXITS $ 1 4 B I L L I O N E X I T E D A C R O S S 2 7 0 D E A L S $14 B 350 AMOUNT ($M) NO. OF DEALS $12 B 300 $10 B 250 $8 B 200 $6 B 150 $4 B 100 $2 B 50 $ B 0 2013 2014 2015 2016 2017

5. TOP PE EXITS BY SIZE - 2017 COMPANY INVESTORS AMOUNT ($M) Aricent KKR, WestBridge, Delta Partners 2,000 (EV) Flipkart Tiger Global, Others 800 GlobalLogic Apax Partners 720 GENPACT Bain Capital, GIC 590 Paytm SAIF, Others 400 Capital First Warburg Pincus 273

6. EXITS BY PROFITABILITY T I M E H O R I Z O N S G E T T I N G S H O R T E R HOLDING PERIOD COMPANY INVESTORS RETURN Paytm Saama Capital 74x 10 Nazara Tech WestBridge 40x 12 Paytm Reliance Venture 28x 7 Paytm SAIF 27x 10 Ace2three Matrix Partners 22x 6 Vini Cosmetics Bay Capital 17x 6 Paytm Sapphire Ventures 16x 6 Dixon Tech Motilal Oswal 16x 10 AU Finance IFC 13x 7

7. BY INDUSTRY 100% OTHERS 90% LOGISTICS 80% 70% MANUFACTURING 60% ENERGY 50% 40% HEALTHCARE 30% BFSI 20% 10% IT & ITES 0% 2014 2015 2016 2017

8. BY INDUSTRY MEDIAN RETURN 3.0x 2.8x 2.7x 2.5x 2.3x 1.6x HEALTHCARE MANUF. ENERGY BFSI IT & ITES ENGINEERING

9. BY TYPE P UB L I C M A R K E T S , S E C O N D A R Y S A L E O V E R T A K E S T R A T E G I C S A L E $6 B Thousands PUBLIC MARKETS STRATEGIC SALE SECONDARY SALE BUYBACK $5 B $4 B $3 B $2 B $1 B $0 B 2014 2015 2016 2017

10. IPO ROUTE $ 1 . 2 B H A R V E S T E D T H R O UG H I P O s . R E P R E S E N T 5 0 % + O F I P O s * $1,500 M 30 EXITED AMOUNT ($M) PE BACKED IPOs $1,250 M 25 $1,000 M 20 $750 M 15 $500 M 10 $250 M 5 $ M 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 *Mainstream IPOs

11. IPO/PUBLIC MARKET EXITS COMPANY INVESTORS EXIT MULTIPLE AMOUNT($M) GENPACT GIC, Bain Capital 2x 590 Max Financial Services Goldman Sachs 3.5x 354 Capital First Warburg Pincus 4.5x 273 AU Small Finance Bank Warburg Pincus, IFC, ChrysCapital, Kedaara Capital 4-13x 247 Dalmia Bharat KKR 4.3x 240 Eris Lifesciences ChrysCapital 7x 209

12. IPO - VC AMOUNT ($M) COMPANY INVESTORS EXIT MULTIPLE Bessemer, Mayfield, JP Morgan Matrimony (10 Yrs) 3-8x 51 Frontline Strategy, Intel, Sandstone Capital Tejas Networks(10 Yrs+) 2-4.5x 18 IIFL VC, Gaja Capital, Granite Hill CL Educate (10 Yrs) 1.2x 5

13. BY PROFITABILITY 2016 2017 108 89 59 44 25 14 12 7 1-3x 3-5x 5-10x 10x+

14. 2017 T H E B I G G E S T Y E A R O N R E C O R D IN $23.8 B INR 1.5 Lakh Cr 591 Deals

15. PE INVESTMENTS AT ALL TIME HIGH $ 2 3 . 8 B I L L I O N I N V E S T E D A C R O S S 5 9 0 D E A L S I N 2 0 1 7 $25 B 900 $20 B 720 $15 B 540 No. of Deals $10 B 360 $5 B 180 $ B 0 06 07 08 09 10 11 12 13 14 15 16 17 AMOUNT ($M) NO. OF DEALS

16. TOP PE INVESTMENTS IN 2017 T O P 1 0 D E A L S A C C O UN T F O R 4 1 % O F T H E V A L UE COMPANY INVESTORS AMOUNT($M) Flipkart SoftBank 2500 Flipkart Tencent, Others 1400 Paytm SoftBank 1400 Ola Tencent, SoftBank, Others 1100 Axis Bank Bain Capital 1067 Bharti Infratel KKR, CPPIB 955

17. MEDIAN INVESTMENT SIZES 2016 2017 201 Cr 195 Cr 143 Cr 101 Cr 40 Cr 40 Cr 14 Cr 8 Cr EARLY GROWTH GROWTH-PE LATE

18. MEDIAN EBITDA MULTIPLE 23.2x 2016 2017 12.6x 11.6x 7.6x 5.6x 5.0x 4.4x 3.7x EARLY GROWTH GROWTH-PE LATE

19. BY INDUSTRY I T & I T e S B O UN C E B A C K 100% OTHERS 90% LOGISTICS 80% 70% HEALTHCARE 60% ENERGY 50% 40% TELECOM 30% BFSI 20% 10% IT & ITES 0% 2014 2015 2016 2017 T O P 6 I N D U S T R I E S F O R P R I V A T E E Q U I T Y

20. VC INVESTMENTS: FINTECH Vs E-COMMERCE F I N T E C H , D E E P T E C H , L O G I S T I C S T E C H S T A N D O UT 100 2016 2017 90 80 70 60 50 40 30 20 10 0

21. BY STAGE ($s INVESTED) L A T E , P I P E , G R O W T H - P E R I S E , V C & B UY O UT F A L L $12 B Thousands 2014 2015 2016 2017 $10 B 47% $8 B 22% $6 B -17% 247% $4 B -17% $2 B $ B LATE GROWTH-PE BUYOUT PIPE VENTURE CAPITAL <$20 M

22. BY SIZE - ABOVE $25 M $ 2 0 0 M + D E A L S D O UB L E D F R O M 1 5 T O 3 1 , F I V E $ 1 B + D E A L S 60 2016 2017 50 10-40% 40 30 20 10 0 $25-50M $50-100M $100M+

23. BY SIZE - SUB $25 M F A L L A C R O S S C A T E G O R I E S 500 2016 2017 400 15-25% FALL 300 200 100 0 $0-5M $5-10M $10-15M $15-25M

24. SUMMING UP 2017 - Biggest Year for Investments and Exits Public Markets and Secondary Sales were the major driver for Exits Big Ticket ($100-M) Investments account for > 75% Led by Asian & Canadian Investors Late Stage segments witness uptrend Early Stage segment witnesses fall for 2nd straight year VC: Fintech > E-Commerce. Deeptech Startups sees spike in interest.