As per the latest Grant Thornton – IVCA Technology Dealtracker report, Indian technology sector has recorded one of the highest ever deal values in 2014. A total of $11.5 billion was closed in 400 deals in both the M&A and PE segments.
Private equity investments in the online retail segment consisted of a major chunk of it, along with the cross border acquisitions made by other tech firms.
eCommerce companies accounted for 75% of the total value of deals in technology sector in 2014, which was 30% in 2012. Online marketplaces like Flipkart and Snapdeal have driven big ticket investments constituting 68% of the total deal value in 2014 and raised around $1.9 billion and $860.7 million funding in last year alone. These companies have shown significant growth in both volume and value of deals. Other Internet based companies like Ola, Foodpanda, Zomato etc. also received multi million dollars in funding.
According to the report, this trend has continued in 2015, with large IT and BPO players looking at cross-border acquisitions to consolidate their service offerings and expand geographical coverage. If the trend continues then India might appear as a green pasture for those international firms who are still skeptical about entering the market, and at the same time open up new avenues for more such Indian companies.