Private equity, VC investments may rise to $6.3bn in ’06

NEW DELHI: Private equity and venture capital investments are expected to rise to $6.3bn for the current year, up from $2.2bn last year, as per a report by Evalueserve.

In the first half of ’06 alone, excluding any debt financing, VCs and PEs invested $3.5bn in Indian companies. Compare this to the fact that the total value of investments during ’04 stood at just $1.7bn.

“Since ’04, the number of deals in India and the total amount invested has been increasing substantially. This is primarily due to the increased interest shown by investors in India and the high levels of growth, especially in the services sector of the country,” said Ashish Gupta, country head and COO, Evalueserve, which has come out with a new report on the venture capital market.

Against 71 deals, which were closed in ’04, the year ’05 saw 146 deals and the report estimates that 311 deals would take place during the current year.