With $35 bn flowing into startups, total deals soar 40% to record $115 bn in 2021: Report

Led by a 50 percent jump in private equity funding to an all-time of over USD 66 billion, the overall deal activity soared nearly 40 percent to reach about USD 115 billion in 2021 across 2,064 transactions, according to a report that expects the momentum to continue this year. The Deal Street was boosted by a 50 percent jump in private equity (PE) deals in value terms to USD 66.1 billion, an all-time high in 2021 across 1,258 deals, which is 32 percent higher in volume compared with 2020, according to data compiled by PwC India.

Of the total PE money, as much as USD 35 billion were pumped into start-ups alone, the report added. Despite the headwinds from the pandemic and other looming uncertainties, the deal activity saw a record high in 2021 and surpassed pre-COVID-19 levels. The deal activity reached USD 114.9 billion with 2,064 transactions, a 40 percent increase from 2020 in terms of value and 60 percent in terms of volume, PwC said.

The record buoyancy in the deal activity was driven by abundant cash reserves, availability of private equity dry powder, foreign direct investments and lower interest rates, it said. Of the total, PE deals contributed 57 percent by value and 61 percent by volume, while mergers and acquisitions (M&As) contributed the remaining 43 percent by value and 39 percent by volume, it said.