Indian IT sector rides high, records PE deals worth $11.5 bn in 2014


E-commerce segment is a massive contributor

E-commerce-segmentKnown as the fastest growing sector in the country IT (Information Technology) industry adds another feather to its cap. Renowned sources from the sector has recorded deals (both M&A and PE) worth $11.5 billion for the year ended 2014 making it a record breaking one. There were close to 400 successful deals within the annual and thus the industry was able to fetch such a record breaking figure for a single year.

E-commerce: The Game Changer:

Just when the world was talking about a decline of IT sector in India, e-commerce has worked up to be the BIG redeemer for the sector. Big ticket e-commerce PE (private equity) investments clubbed with cross-border acquisitions by major IT companies in the country have totaled to a massive end figure. Observers from all over the world have already tagged India as the global capital of start-ups especially in the e-commerce industry.

As per total values of deals in IT sector, e-commerce went up to 75% in 2014 from 30% in 2012


What the future holds?

With a large availability of investors in the forms of seed, angel, VC to PE; India is turning to be a potential market for new start-ups in the IT sector. Experts have predicted the continuation of the trend which is assumed to go on through 2015. E-commerce and SaaS (Software as a Service) are listed to be contributors which will constantly score high and build a healthy IT industry. New start-ups rooting up from India both with help of domestic investments and foreign funding will continue to be the upward trends that will bring in the positive numbers for the sector.

With the stabilization of the economy, prolonged government and expectations of new fulfilling reforms; the Indian IT segment is ought to be among the frontier businesses which will pull in more and more global investors.