July 2021 has been a promising month for deal activities with India.Inc recording 181 deals amounting to USD 13.2 billion. There has been a significant increase in deal volumes at 66% and a 3% increase in the deal values compared to July 2020. This is also the highest record volume for any given month since 2005. The market is showing optimism despite the possibility of a third wave of the COVID-19 pandemic.
The deal activity in mergers and acquisition saw 36 deals worth USD 5.6 billion in July 2021. Although the volumes were up by 13% the deal values declined by 37% compared to July 2020. This was mainly due to the shortfall in big-ticket transactions. There were 145 deals valued at USD 7.5 billion in the private equity (PE), venture capital (VC) investments segment.
Key highlights of the publication
- 181 deals aggregating to USD 13.2 billion recorded in July 2021
- Record volumes in a month since 2005
- Major deals in education and tech reported
M&A snapshot
- M&A volumes were driven by domestic consolidation which constituted for two-thirds of M&A volumes.
- Start-up sector with 10 deals leads in volumes, while banking and financial services lead on value
- Byju’s acquisition of Great Learning for USD 0.6 billion and USA’s Epic for USD 0.5 billion
- Sumitomo Mitsui’s majority stake acquisition of Fullerton India Credit Company for an estimated USD 2 billion
- The telecom towers and infrastructure and renewable cleantech space of the telecom and energy sector respectively witnessed high value deal each
PE snapshot
- Start-up sector drove the PE volume with a 68% share of volumes at USD 1.1 billion
- July witnessed the largest seed funding of USD 40 million in 10club and GlobalBees Brands raising the largest series A funding of USD 150 million
- Walmart’s Indian e-commerce store Flipkart raised USD 3.6 billion in fresh funds
- Two e-commerce companies, Blackbuck with USD 67 million funding and Grofers raising USD 120 million entered the unicorn club
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