MUMBAI: Led by a 50 per cent jump in private equity funding to an all-time high of over USD 66 billion, the overall deal activity soared nearly 40 per cent to reach to about USD 115 billion in 2021 across 2,064 transactions, according to a report that expects the momentum to continue this year.
The Deal Street was boosted by a 50 per cent jump in private equity (PE) deals in value terms to USD 66.1 billion, an all-time high in 2021 across 1,258 deals, which is 32 per cent higher in volume compared to 2020, according to data compiled by PwC India.
Of the total PE money, as much as USD 35 billion was pumped into start-ups alone, the report added.
Despite the headwinds from the pandemic and other looming uncertainties, the deal activity saw a record high in 2021 and surpassed pre-COVID-19 levels.
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The deal activity reached USD 114.9 billion with 2,064 transactions, a 40 per cent increase from 2020 in terms of value and 60 per cent in terms of volume, PwC said.
The record buoyancy in the deal activity was driven by abundant cash reserves, availability of private equity dry powder, foreign direct investments and lower interest rates, it said.
Of the total, PE deals contributed 57 per cent by value and 61 per cent by volume, while mergers and acquisitions (M&As) contributed the remaining 43 per cent by value and 39 per cent by volume, it said.
The country also saw a record 43 start-ups turning into unicorns in 2021.
Start-ups had a blockbuster year with around USD35 billion raised across more than 1,000 rounds, a three times increase compared to 2020 and largely driven by fintech, edutech and software-as-a-service (SaaS).