Are private equity (PE) investors losing faith in Indian start-ups? Well, according to a report by Grant Thornton that might well be the case.
The first three quarters of this year have seen 735 private equity deals in the Indian startup space amounting to $8.4 billion, a far cry from the $12.4 billion figure seen during the same period last year.
The biggest drop in PE activity has been in the e-commerce space with investments down to just $931 million, half of what the sector received over the same period last year.
Startups, in general, have also lost some favour among PE investors, with a year-to-date investment figure of $2 billion, down 45 percent from previous year.
The other sector which has lost some ground this year is the pharmaceutical and healthcare sector, while information technology and allied services have definitely made their mark in 2016, witnessing the biggest jump in investments at $1.17 billion.