Unitus Capital has issued their first impact equity research report. They note that in 2013, impact equity investing continued to be an important component of the India private equity landscape comprising 23% of the overall private equity transactions in India. These investments were spread over 80 deals and totaled a quantum of US$ 390 mn.
In the same report, they found that Unitus Ventures (formerly Unitus Seed Fund) was the most active impact seed-stage investor in India. Read more here>
Some of the key trends in impact equity investing in 2013 included:
- Most investments were in early-stage impact businesses reflecting the youth of this sector;
- Financial services continued to be the leading sector with 22 transactions in 2013;
- Strong showing for agri-business and healthcare with 17 and 13 transactions respectively;
- Significant growth of seed-stage and micro-seed stage investments priming the pump for more investing activity in 2014;
- Participation of new global investors and raising of rupee capital for impact businesses demonstrating growing appeal for investment in impact businesses;
- Some significant exits that will help attract even more investment interest in the impact investing sector.
All of this brings good momentum into 2014 which we expect to be somewhat tumultuous in the first half as the expected Indian national elections transpire. Despite this, we expect to see a 30% increase in India impact investing transactions in 2014.
Full report here: 2013 India Impact Equity Investment Report >