Private Equity-Venture Capital (PE-VC) exits in Indian companies surged to 22 deals in February, due to increasing acquisitions in the start-up ecosystem, backlogs of 2020 getting cleared out and the stock markets performing well resulting in more stake sales.
This is the highest number of PE-VC exits since March 2019, according to data from Venture Intelligence, a firm that tracks private companies’ investments, financials and valuations.
Pent-up demand
Sandeep Mishra, Vice-President, Research and Investments, Zephyr Peacock India, said the surge in the number of exit deals is due to pent-up demand from last year being filled up and also because of markets recovering fast post the Covid shake-up. He added that the exit ecosystem is also maturing with increasing mergers and acquisitions in the start-up ecosystem and the consolidation play in technology sectors.