Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

iSPIRT: M&A activity report may 2013

M&A opportunities for Indian product startups. Indian product companies punch below their weight. Despite huge innovation and rising entrepreneurship, most Indian product companies are invisible on the global map. The reasons are many, but a big one is the lack of meaningful exits for companies that actually create value in their product markets. This paper focuses on a plan to address this gap.

  • Login to see the comments

iSPIRT: M&A activity report may 2013

  1. 1. India Technology M&AActivity Review 2013May 2013This report is solely for the use of Zinnov and Ispirt Client/Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside the clientorganization without prior written approval from Zinnov and IspirtSupported by Knowledge Partner
  2. 2. KeyTrendsCross border Tech M&A activity iswitnessing increased momentumStart-up ecosystem is rapidlygrowing to position India as a hubof technology innovationAn evolving ecosystem of VCs/Accelerators/ Incubators is furthersupporting the growthABCKey trends in Indian Technology M&A landscape..Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRTAll Rights Reserved
  3. 3. ACross border Tech M&A activity is witnessing increased momentum445636% Outbound16% 48%Inbound Domestic15% Outbound46% 39%Inbound DomesticNote: 1USA not considered in the list• At an average of US$ 37 Mn, India iswitnessing 30 times increase in mediandeal size since 2009Total Tech M&A Deals20092012Key Inbound M&A Deals Over The YearsAcquired stake infor $ 75 MnAcquired stake infor $ 100 MnSource: Zinnov AnalysisCopyright (c) Zinnov/iSPIRTAll Rights Reserved
  4. 4. Total Number Of Start-ups1 (2012)Start-up ecosystem is rapidly growing to position India as a hubof technology innovationBNote: 1According Angel List25,883USA1,646Canada2,128U.K.600Germany1,326India492Israel231China152JapanNumber Of Start-upsgrowing in India at a CAGR~15%Famous Indian Start-ups have been nurturedby MNC Talent• Founded by ex Amazon employees• Founded by ex IBM, TI andHoneywell employees• Founded by ex Yahoo employeeR&D Talent Pool Across 1,033 MNCs in India =~235,000Region % Start-ups% MNC R&DCentres% MNC R&DTalentBangalore 27 % 40 % 53 %Mumbai Region 22 % 21 % 17 %Delhi NCR 24 % 16 % 10 %Hyderabad Region 13 % 11 % 13 %Source: Zinnov AnalysisCopyright (c) Zinnov/iSPIRTAll Rights Reserved
  5. 5. CAn evolving ecosystem of VCs/ Accelerators/ Incubators isfurther supporting the growthNo. of technologyincubators10x120+No. of angelnetworks >20No. of jobs created 25x400,000+~ 20 Incubators/Accelerators added in2012 alone~ $25 Mn early stageannual funding providedto start-ups in 2012VC Funding has grown 2Xbetween 2009 and 2011to reach ~$1.1 BnTechnologyStart-ups fundedannually60x>250Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRTAll Rights Reserved
  6. 6. Cloud/ Big DataEducationMobileSocial MediaProductivityE-CommerceHealthcare32%29%21%18%18%14%11%Focus Area Of Indian Start-ups49% of all tech M&A deals inIndia in 2012-13 focused onCLAMS1The drivers are further converging towards a promising Indiantech M&A landscapeSoftware and Internetnow account for 68% ofall M&A Tech Deals inIndiaNote: 1Cloud, Analytics, Mobility and SocialSource: VCC edge, Zinnov AnalysisCopyright (c) Zinnov/iSPIRTAll Rights Reserved
  7. 7. ConclusionIndia is likely toemerge as a hub oftechnology innovationsIndia to witness tremendousgrowth in number of techcompanies of value to globalbrandsEcosystem collaboration &community engagement required tonurture the growthM&A activity to gaincontinuous tractionSource: Zinnov AnalysisCopyright (c) Zinnov/iSPIRTAll Rights Reserved
  8. 8. AppendixCopyright (c) Zinnov/iSPIRTAll Rights Reserved
  9. 9. Note: 1Till 10th May, 2013Total Tech M&A Deals2 2 1 42637 33 2811121212 11244 13 12211Hardware Software IT Services Internet Semi Conductor2009 2010 2011 2012 2013144 55 59 56 16Deal Split By M&A Activity16 15 11 8 87 16 16 2612121 25227Outbound Inbound Domestic2009 2010 2011 2012 2013144 55 59 56 16Tech M&A Deal TrendsSource: Zinnov AnalysisCopyright (c) Zinnov/iSPIRTAll Rights Reserved
  10. 10. 5%59%27%9%Hardware Software IT Services Internet SemiconductorsSoftware industry emerging as key category for M&ATech M&A Deal Split By Industry200944 Deals2 Deals 26 Deals 12 Deals 4 Deals10%46%20%22%2%4 Deals 28 Deals 11 Deals 12 Deals 1 Deal201256 Deals• IT services industry giants like Wipro nowexploring M&A route to enter newmarkets/service lines rather than looking to addtopline revenueTop Software Deals in 2012Acquired 100% stake infor $ 202 MnAcquired 100% stake infor $ 176 MnSource: Zinnov AnalysisCopyright (c) Zinnov/iSPIRTAll Rights Reserved
  11. 11. Bangalore, Mumbai and NCR, top Tech M&A destinationsTech M&A Deal1 Split By Location (2009 -2012)Note: 1Only Inbound and Domestic M&A Deals considered.BangaloreMumbai RegionHyderabadDelhi NCR2210123822163319141913617152ChennaiTotal DealsDomesticInbound DealsTop Outbound DealDestinations (2009-2012)Location Number of DealsCalifornia 6Singapore 5San Francisco 3London 3New York 3Texas 2Source: Zinnov AnalysisCopyright (c) Zinnov/iSPIRTAll Rights Reserved
  12. 12. Thank YouiSPIRT FoundationNp. 501, 7th Main,Girinagar 2nd Phase,Bangalore – 560085www.iSPIRT.ininfo@iSPIRT.in3701 Patrick Henry Dr.Building 7Santa ClaraCA – 95054Phone: +1-408-716-8432