01/07/2022 – Investments / India / M&A / Mergers / Acquisitions / Activity / JPIN / UK
India completes record quarter of M&A deals amidst global slowdown
India has recorded US$82.3 billion worth of deals, despite global volume being down 8.7 per cent. Gaurav Singh, founder of JPIN – the largest bilateral investment bank across UK/India – explains why the Asian country is set to be the leading player in economic growth and investment opportunities.
India has recorded a record-breaking US$82.3bn for pending and completed mergers and acquisitions in the second quarter of 2022 despite a global slowdown, according to Bloomberg. That is over twice the amount of the previous record of US$38.1bn in the third quarter of 2019. Globally, M&A volume reached US$827.6bn – down 8.7 per cent from the same period in 2021 – yet the appetite of strategic investors has continued to fuel the sixth-largest economy in the world, with the nation projected to become the fastest-growing economy by the end of the year – overtaking the likes of China.
India’s impressive M&A activity in contrast to global M&A performance
India's record-breaking quarter is in contrast to the sharp curb of global M&A activity amidst a looming recession. This is in large part due to the catalysing effects of worldwide inflation and a stock market rout, which have made boards less willing to expand through acquisitions.
The conflict in Ukraine has also created further uncertainty and stunted deal-making activity, with Dealogic revealing that the global value of announced deals has fallen 25.5 per cent from last year.
On a global scale, M&A activity in the US dropped by 40 per cent, while the Asia-Pacific region showed a 10-per-cent decline in the second-quarter – according to Dealogic. In the UK, domestic, inward and outward M&A deals were all notably lower in Q1 this year, compared to the same time last year.
Top destination for startups
With India often dubbed ‘Asia’s Silicon Valley’, the country’s young and dynamic population has given birth to some of the world’s most successful CEOs, and the country is now becoming a top destination for startups seeking funding, as well as investors looking for attractive opportunities.
Whilst businesses continue to navigate the implications of global 'stagflation', India has continued to thrive, further cementing the nation's desire to become an integral part of global investment opportunities and ultimately, the global economy.
With this in mind, JPIN – the largest bilateral bank between the UK and India – has helped create two unicorns in the past two years, and is dedicated to creating the next ‘decacorn’ – i.e., a company valued at more than US$10 billion. With a portfolio worth US$2.3bn, JPIN has worked with key players in the medtech, fintech and greentech arena, with a key desire to not only invest in the future of emerging markets, but to bridge the gap between investment opportunities in the UK and India, ultimately bringing two of the world's most prominent startup ecosystems together.
“It's clear that some of the most well-known economies around the world have taken a significant interest in securing a trade deal with India. The country has continued to show signs of real development with record growth in exports and foreign investment,” remarked Gaurav Singh, founder of JPIN.
"With the pandemic having revised perspectives on a global level, the main themes coming to the forefront of many businesses' minds will likely focus on ESG and digitalisation. Firms around the world will need to consolidate these two factors to become stronger and gain market share in their core sectors to sustain themselves in an uncertain environment,” he continued. “
India's record-breaking quarter for M&A activity clearly illustrates how companies hailing from the country are successfully positioning themselves for the changing landscape in technology,” noted Mr Singh, adding that with India being one of the leading hubs of IT and technology, he expected “to see an increasing number of investors turning East in search of the startups that could shape the future of the global economy”.
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