Indian Private Equity Landscape 2016: Insights and Trends

The state of Indian private equity in 2016 reflected significant activity and growth across various industries. Key highlights include the dominance of PE/VC over IPOs, consistent PE investments over 2 years, industry-wise distribution of deals, investment stages, and top PE investments centered around telecom, energy, IT services, and more. The resurgence of big-ticket PE investments in sectors like e-commerce and infrastructure also contributed to the evolving landscape.

• Private Equity
• Indian Market
• Investments
• Trends
• 2016

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1. WHAT THE DATA SAYS THE STATE OF INDIAN PRIVATE EQUITY @ventureindia #ApexPEVCSummit Fb.com/ventureintelligence

2. PRIVATE EQUITY Vs. IPOs C O R P O R A T E I N D I A R A I S E D 6 . 5 x V I A P E O V E R I P O s I N L A S T 6 Y r s INR 120k Cr IPOs (INR 64k Cr) PE/VC (INR 426k Cr) INR 90k Cr INR 60k Cr INR 30k Cr INR k Cr 2011 2012 2013 2014 2015 2016

3. PE INVESTMENTS NEVER DOWN FOR >2 Yrs $ 1 5 B I L L I O N I N V E S T E D A C R O S S 5 8 0 D E A L S I N 2 0 1 6 $20 B 800 $16 B 640 NO. OF DEALS $12 B 480 $8 B 320 $4 B 160 $ B 0 05 06 07 08 09 10 11 12 13 14 15 16 AMOUNT ($M) NO. OF DEALS

4. BY INDUSTRY B F S I & I N F R A D E A L S B O UN C E B A C K I N 2 0 1 6 , I T R E V E R T S T O ~ 3 0 % MANUFACTURING HEALTHCARE ENERGY TELECOM $7.7 B BFSI $6. B $4.7 B $2.3 B IT & ITES 2013 2014 2015 2016 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

5. BY STAGE 2 0 1 6 I S H I G H E S T E V E R F O R B UY O UT S PIPE VENTURE CAPITAL GROWTH-PE $3.1 B $4.1 B BUYOUT $2.5 B LATE 2013 2014 2015 2016

6. TOP PE INVESTMENTS IN 2016 C A N A D I A N I N V E S T O R S D O M I N A T E D E A L S , E - C O M M E R C E S L I P S COMPANY SECTOR INVESTORS STAGE AMOUNT Reliance Infratel Telecom BUYOUT $1.6 B BROOKFIELD ICICI VENTURE, CDPQ, SGRF, KIA, Others Resurgent Power Energy GROWTH $850 M Mphasis IT Services BLACKSTONE BUYOUT $825 M Bangalore Airport Airport LATE $321 M FAIRFAX HOLDINGS GE Capital Services NBFC AION CAPITAL, Others BUYOUT $300 M SAIF, ALIBABA, MEDIATEK Paytm Payments LATE $300 M Sanmar Group Chemicals LATE $300 M FAIRFAX HOLDINGS

7. T H E S T A T E O F BIG TICKET PRIVATE EQUITY

8. RESURGENCE IN BIG TICKET PE ($100M+) E - C O M M E R C E I S N T T H E B I G G E S T D R I V E R $12 B INTERNET & MOBILE OTHERS $10 B $8 B $6 B $4 B $2 B $ B 2011 2012 2013 2014 2015 2016

9. SECTOR FOCUS FOR BIG TICKET PE S H I F T T O I N F R A S T R UC T UR E & B F S I ( $ 1 0 0 M + ) 2016 2015 CONSUMER INTERNET 30% ($3 B) INFRASTRUCTURE 44% ($3.8 B) INFRASTRUCTURE 21% ($2 B) BFSI 20% ($1.8 B) BFSI 19% ($2 B) CONSUMER INTERNET 11% ($1.2 B) IT SERVICES 14% ($1.4 B) IT SERVICES 11% ($900 M) HEALTHCARE 10% ($1 B) MANUFACTURING 6% ($550 M) AMOUNT INVESTED IN $100M+ DEALS AMONG TOP 5 SECTORS

10. LARGEST PE EXITS IN 2015-16 E M E R G E N C E O F Q UI C K F L I P S RETURN MULTIPLE HOLDING PERIOD COMPANY INVESTORS AMOUNT iGATE APAX PARTNERS $1.1 B 3.0X 4 ALLIANCE TIRE KKR, IFC $1 B 2.8X 3 GLAND PHARMA KKR $556 M 2.7X 3 CX PARTNERS CAPITAL SQUARE MINACS BPO $420 M 1.7X 2 LAFARGE INDIA BARING ASIA $306 M 1.4X 2 INTERNATIONAL TRACTORS BLACKSTONE $250 M 2.3X 4

11. T H E S T A T E O F GROWTH CAPITAL

12. GROWTH CAPITAL THE WIDENING CHASM D E C R E A S E I N G R O W T H C A P I T A L F UN D I N G 2x -8% 2.5x V E N T U R E C A P I T A L ( < $ 2 0 m ) G R O W T H C A P I T A L ( $ 2 0 - 5 0 m ) B I G T I C K E T P E ( > $ 5 0 m ) 2010 - $750 M 2010 - $1.3 B 2010 - $4 B 2016 - $1.2 B 2016 - $10 B 2016 - $1.5 B

13. PE LANDSCAPE IN 2007-10 A C T I V E I N V E S T O R S Big Ticket Private Equity $50 M+ 3i, Ashmore, Bain Capital, Baring Asia, Blackstone, General Atlantic, GIC, Goldman Sachs, JP Morgan Carlyle, KKR, Morgan Stanley, SBI-Macquarie, StanChart Temasek, TPG, Warburg Pincus $20-50 M Growth Capital Actis, Avigo, Beacon India, DE Shaw, Elephant Capital, Granite Hill, IFCI Ventures, India Equity Partners, Kubera Partners, New Silk Route, New Vernon, <$20 M Venture Funds Nexus , Helion, Ventureast, Sequoia, Accel, DFJ, Bessemer, Kalaari, IDG, Inventus Capital, Matrix Partners, Tiger Global, Canaan Partners, Basil Partners, Bedrock Ventures Seed Investors Blume Ventures, Seedfund, DFJ, Accel, KITVEN, Ojas, Reliance Ventures

14. PE LANDSCAPE IN 2016 A C T I V E I N V E S T O R S $50 M+ Big Ticket Private Equity Abraaj Group, AION, Arpwood, Blackstone, Brookfield, CDPQ, ChrysCapital, CX Partners , Fairfax Faering Capital, General Atlantic, GIC, Goldman Sachs, IDFC, IFC, Kedaara, Khazanah, KKR, PremjiInvest, Sofina, SoftBank, TA Associates, Temasek, Tiger Global, TPG, Warburg Pincus $20-50 M Growth Capital ADV Partners, Eight Roads, Everstone, Gaja Capital, Multiples PE, Norwest, Orbimed, Peepul Capital <$20 M Venture Funds Sequoia, Accel, Kalaari, SAIF, IDG, Omidyar, Beenext, Nexus, RB Investments, Matrix, Norwest, Lightspeed, Inventus, M&S Partners, Mayfield, Digital Garage Seed Investors Aarin, Axilor, Blume Kae Capital, YourNest IndiaQuotient, Exfinity, Saha

15. PRIVATE EQUITY & START-UP ECOSYSTEM L E A P F R O G G I N G F UN D I N G R O UN D S W I T H P R I V A T E E Q UI T Y Series C $70 m, 2016 Series A $9 m, 2012 Series D $150 m, 2016 Series A $7 m, 2012 Series D $45 m, 2016 Series A $1.8 m, 2010 Series C $35 m, 2014 Series B $5 m, 2013

16. T H E S T A T E O F VENTURE CAPITAL

17. VC INVESTMENTS SEED TO SERIES D <$20M $ 1 . 5 B I L L I O N I N V E S T E D A C R O S S 4 2 0 D E A L S I N 2 0 1 6 $2,500 M 600 $2,000 M 480 $1,500 M 360 NO. OF DEALS $1,000 M 240 $500 M 120 $ M 0 05 06 07 08 09 10 11 12 13 14 15 16 AMOUNT ($M) NO. OF DEALS

18. BY INDUSTRY (NO OF DEALS) S H I F T F UR T H E R T O W A R D S T E C H 7 5 % o f O V E R A L L S H A R E OTHERS MANUFACTURING EDUCATION BFSI F&B HEALTHCARE IT & ITeS 2013 2014 2015 2016

19. IT & ITeS FOCUS C O N S UM E R I N T E R N E T & M O B I L E S T I L L T O P D R A W IT PRODUCTS & SERVICES, 7% IT PRODUCTS & SERVICES, 7% IT PRODUCTS & SERVICES, 7% IT PRODUCTS & SERVICES, 14% ENTERPRISE 17% ENTERPRISE 16% ENTERPRISE 25% ENTERPRISE 24% INTERNET & MOBILE 77% INTERNET & MOBILE 77% INTERNET & MOBILE 68% INTERNET & MOBILE 62% 2013 2014 2015 2016

20. CONSUMER, INTERNET & MOBILE M O S T F A V O UR E D T H E M E S 2013 2014 2015 2016 FINTECH FINTECH FINTECH FINTECH FASHION FASHION FASHION HEALTH TECH TRAVEL & TRANSPORT TRAVEL & TRANSPORT B2B F&B E-COMMERCE TRAVEL & TRANSPORT TRAVEL & TRANSPORT CONTENT HR TECH REAL TECH HYPERLOCAL CONTENT FASHION

21. SERIES A CRUNCH HURTS BIG IN 2016 V C I N V E S T M E N T S B Y R O UN D 2013 2014 2015 2016 200 100 0 SEED SERIES A SERIES B SERIES C SERIES D

22. T H E S T A T E O F PRIVATE EQUITY & VENTURE EXITS

23. PE/VC EXITS $ 8 B I L L I O N E X I T E D A C R O S S 2 3 1 D E A L S ( I N C L . P A R T E X I T S ) I N 2 0 1 6 $10 B 300 $8 B 225 NO. OF DEALS $5 B 150 $3 B 75 $ B 0 05 06 07 08 09 10 11 12 13 14 15 16 AMOUNT ($M) NO. OF DEALS

24. BY INDUSTRY M A N UF A C T UR I N G T R UM P S I T I N 2 0 1 6 OTHERS TELECOM LOGISTICS BFSI HEALTHCARE IT & ITeS MANUFACTURING 2013 2014 2015 2016

25. BY TYPE S T R A T E G I C S A L E S O N T H E R I S E SECONDARY SALE $0.7 B SECONDARY SALE $1.7 B SECONDARY SALE $2.7 B SECONDARY SALE $1.9 B PUBLIC MARKET $2.4 B PUBLIC MARKET $3.3 B PUBLIC MARKET $3.1 B PUBLIC MARKET $2.0 B STRATEGIC SALE $3.4 B STRATEGIC SALE $3.2 B STRATEGIC SALE $0.9 B 2013 2014 2015 2016

26. EXITS BY PROFITABILITY (2016) L O N G E R T I M E H O R I Z O N S F O R V C RETURN MULTIPLE HOLDING PERIOD PORTFOLIO COMPANY INVESTORS DEAL TYPE 22x 9 Justdial SAIF PUBLIC MARKET 13.5x 8 Equitas Holdings AAVISHKAAR IPO 10x 3 Byjus Classes AARIN CAPITAL SECONDARY SALE 7.5x 6 Dhanuka Agritech LIGHTHOUSE PUBLIC MARKET 7.5x 10 Ujjivan Microfinance UNITUS IPO 7.4x 5 Manpasand Beverages SAIF PUBLIC MARKET Cholamandalam Investment 7.3x 7 IFC PUBLIC MARKET 6x 6 Satin Creditcare SHORECAP PUBLIC MARKET

27. P R I V A T E C O M P A N Y F I N A N C I A L S , T R A N S A C T I O N S & V A L U A T I O N S @ventureindia #ApexPEVCSummit Fb.com/ventureintelligence