In 2013, impact equity investing continued to be an important component of the India private equity landscape comprising 23% of the overall private equity transactions in India. These investments were spread over 80 deals and totaled a quantum of US$ 390 mn.
Some of the key trends in impact equity investing in 2013 included:
- Most investments were in early-stage impact businesses reflecting the youth of this sector;
- Financial services continued to be the leading sector with 22 transactions in 2013;
- Strong showing for agri-business and healthcare with 17 and 13 transactions respectively;
- Significant growth of seed-stage and micro-seed stage investments priming the pump for more investing activity in 2014;
- Participation of new global investors and raising of rupee capital for impact businesses demonstrating growing appeal for investment in impact businesses;
- Some significant exits that will help attract even more investment interest in the impact investing sector.