Data shows the number of private equity (PE) firms holding stakes in Indian IT services companies has doubled between 2019 and 2022 as investors eye safe bets. This and more in today’s ETtech Morning Dispatch. Indian IT services drive strong PE interest amid global uncertainty. The Indian information technology (IT) sector is becoming an increasingly attractive investment area for investors. According to data from Avendus Capital, the number of private equity (PE) firms holding stakes in Indian IT services companies has doubled between 2019 and 2022 to more than 50.
Institutional shareholding in listed IT services companies has also increased — by 9% for large-cap players, and 16-18% for mid-cap and small-cap firms — over the last 12 months. There has been a clutch of acquisitions led by PE firms such as ChrysCapital and Carlyle.
While investment in the country’s startup ecosystem has taken a hit, experts suggest that the interest in IT firms is mainly because they are considered “safe” as they have demonstrated a tried-and-tested business model and profitability.
Dunzo delays June-July salaries further, says making ‘positive progress’ on funding. Highlighting its worsening cash crunch, quick commerce startup Dunzo has told employees that it will further delay the pending June-July salaries.
Risk capital inflow into Indian companies and startups has entered “healthy territory”, according to industry members. Data shared by Bain & Company exclusively with ET suggests that private equity (PE) and venture capital (VC) funds invested $21 billion in the first six months of 2023.
Food and grocery delivery platform Zomato made headlines last month for its first-ever quarterly profit. But shareholders are yet to see the money, as the company said it has no plans at present to pay dividends – but never say never.
The Indian fintech sector is expected to drum up overall business of more than $400 billion in terms of value by 2030, according to a report by early stage venture investor Elevation Capital.
Walmart-owned PhonePe announced on Wednesday its entry into the stockbroking space with its app Share.Market, which will enable users to open trading accounts and invest in stocks, mutual funds and exchange traded funds (ETFs).
