India equity deals set to pick up pace as investors hunt post-pandemic bets

 The fundraising boom in India by firms, ranging from an e-comm platform to a food delivery apps, comes even as the country's economic rebound, already weakened in recent months, faces risk from Covid

Cash-laden investors are set to step up the hunt for Indian firms, mainly tech start-ups, likely to benefit in the post-pandemic world, after pumping in a record $30 billion via public and private equity deals this year, bankers and analysts said.

Eyeing India's large middle class with access to cheap smartphones and the internet, global investors have flocked to online platforms in the country and helped swell the ranks of unicorns, or start-ups valued at $1 billion or above.

In addition, a regulatory clampdown by China on its technology firms is spurring some foreign investors to turn to the world's second-most populous nation instead, analysts said.

The fundraising boom in India by companies, ranging from an e-commerce platform to a food delivery app operator, comes even as the country's economic rebound, already weakened in recent months, faces risk from coronavirus variants.

In private equity capital deals, which include placements and pre-IPO funding rounds, $22 billion has been raised so far this year, according to Pitchbook data, putting India on track to exceed 2020's record of $37 billion.

Of the amount raised in 2021, foreigners invested $13.21 billion in the first half of this year - the most ever - compared with $4.99 billion in the same period last year, separate Refinitiv data showed.

In addition to that, there was $5.4 billion raised via 43 initial public offerings (IPOs) year to date, making it the busiest period ever, the Refinitiv data showed, up sharply from $1.24 billion during the same time last year.