Private equity investors pumped in a record $62.2 billion into Indian companies last year, according to Bain & Company's India Private Equity Report 2021.
Nearly 40 percent of that came from the $26.5 billion raised by Jio Platforms and Reliance Retail.
However barring the Reliance transactions, the deal value fell 20 percent over 2019, as the volume of large deals of more than $100 million decreased by nearly 25 percent.
While private equity investments remained muted in the first half of the pandemic year, there was a surge in investment in the second half of the year as investor confidence recovered.
Sectorally, healthcare, consumer tech, and manufacturing contributed the most to growth, while IT/IT-enabled services remained relatively strong despite contractions across several sectors.
Investing in a post-COVID world was led by a transformation in the consumer and business ecosystem. Offline channels quickly moved online. Disruptions in supply chains meant the survival of the fittest or the most agile and rapid adoption of remote working turned focus on healthier safer living.
This year promises to be no different as maximum dollars chase the best startups in the healthtech, edtech, fintech and consumer tech space. 2021 is also going to be a litmus test for the Indian startup ecosystem as some of its most valued and most popular companies are headed towards a public offering.
Another trend that has fast gained momentum over the last year is the accelerated pace of consolidation - from Byjus buying Akash & many others to Tata Digital's shopping spree and JioMart's aggressive expansion plans, 2021 is likely to be another eventful year for the startups and investors.
Shereen Bhan spoke to Karthik Reddy, co-founder of Blume Ventures, Vice Chairman of IVCA; Prabhav Kashyap, Associate Partner at Bain & Company and Ankit Agarwal, Partner at Alteria Capital; to discuss the year ahead for startups.Watch video for more.