Private Equity: Setting the Pace in a Frenetic World

1. In today’s frenetic world, how does private equity set the pace? Learn how EY helps private equity professionals thrive in the transformative age IVCA-EY PE/VC Roundup ENTER

2. Foreword and outlook In August 2024, PE/VC investments recorded US$2.9 billion, a 47% decline from August 2023 but a 5% increase from July 2024. The number of deals in August 2024 saw a 31% year-on-year increase. “ Pure play PE/VC investments in August 2024 recorded US$2.1 billion, marking a 34% year-on-year decline (US$3.1 billion) but a 13% increase from July 2024 (US$1.8 billion). The number of deals saw a 36% year-on- year increase, with 79 deals in August 2024 compared to 58 in August 2023. Investments in the real estate and infrastructure asset class amounted to US$838 million, a 63% drop year-on-year (US$2.3 billion) and 10% lower than July 2024 (US$928 million). “ Growth investments, the largest deal type in August 2024, recorded US$1.5 billion, accounting for 51% of overall investments. This was followed by start-up investments (US$695 million). From a sector point of view, financial services emerged as the top sector, attracting US$548 million in PE/VC investments. “ “ PE/VC exits in August 2024 recorded US$2.8 billion across 28 deals, reflecting a 36% year-on-year decline (US$4.3 billion in August 2023). Open market exits in August 2024 accounted for 81% of the total exit value (US$2.3 billion). After a sluggish July, deal momentum has remained subdued in the second half of 2024. The average number of deals per month in the first half of 2024 was 110, but the initial two months of the second half have seen a 20% decline, with a monthly average of 88 deals. This trend is also evident in large deals (deals with value greater than US$100 million). While a few large deals helped sustain PE/VC investments in the first half of 2024 that averaged 12 large deals per month, the second half of 2024 has seen a sharp decline, averaging only seven large deals per month. We have seen only four deals exceeding $1 billion in value in 2024 so far as compared to six $1 billion plus deals in the first 8 months of 2023. We think this is primarily on account of mismatch in valuation ask between buyers and sellers. “ Vivek Soni Vivek Soni Although India’s fiscal health remains good and overall macro-economic environment is positive, overall deal momentum is sluggish due to ongoing geopolitical tensions and material bid-ask spreads between buyer valuations and seller expectations. A correction in asset prices or a rerating of earnings growth should help close this gap and increase the value and volume of deal closures. We remain cautiously optimistic. Partner and National Leader Private Equity Services, EY India “

3. Agenda 1 Monthly trend analysis: August 2024

4. Monthly trend analysis: August 2024

5. Key trends PE/VC investments in August 2024 reached US$2.9 billion, 47% lower than in August 2023 (US$5.4 billion) but 5% higher than in July 2024 (US$2.8 billion). In terms of deal volume, August 2024 saw a 31% increase with 92 deals compared to 70 in August 2023. Investments ► August 2024 recorded eight large deals (deals with value greater than US$100 million), aggregating US$1.7 billion, a 63% decline in value from August 2023 (US$4.6 billion across 14 deals). The largest deal of the month involved General Catalyst, Dragon Fund, EPIQ Capital, and others, investing US$340 million in KiranaKart Technologies (Zepto). ► Growth investments had the largest share in August 2024, with US$1.5 billion invested across 20 deals compared to US$2.3 billion across 13 deals in August 2023, marking a decline of 34%. Start-up investments were the second largest, with US$695 million invested across 50 deals in August 2024, a growth of 79% compared to US$387 million across 27 deals in August 2023. Buyout investments were the third highest at US$431 million across six deals, reflecting 10% growth from August 2023 (US$391 million across six deals). PIPE investments recorded US$215 million across 10 deals, a sharp 90% decline from August 2023 (US$2.2 billion across 20 deals). Credit investments stood at US$79 million across six deals, down 65% from August 2023 (US$229 million across four deals). ► From a sector point of view, financial services was the top sector in August 2024, attracting US$548 million in PE/VC investments across 18 deals, followed by e-commerce (US$533 million) and infrastructure (US$425million). These sectors, combined, accounted for 52% of total PE/VC investments in August 2024. ► Page 5 E Y A N A L Y S I S O F V C C E D G E D A T A

6. PE/VC monthly headline trends: investments Total PE/VC investments US$m # 7,500 160 134 140 119 6,000 109 106 120 96 93 92 87 100 84 82 4,500 75 70 80 6,966 59 6,889 3,000 5,900 60 5,443 4,906 4,538 4,513 4,133 40 3,509 1,500 2,911 2,904 2,765 20 1,577 0 - Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Value (US$m) # of deals PE/VC investments: split across asset classes US$m 8,000 45 6,000 2,487 1,228 94 1,830 5,083 890 585 2 897 4,000 1,736 506 409 601 463 425 170 672 692 504 413 4,434 2,000 3,922 236 646 3,775 3,625 3,327 3,150 541 701 2,931 2,298 2,073 1,836 3 1,586 1,265 873 - Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 PE/VC investments (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m) Page 6 E Y A N A L Y S I S O F V C C E D G E D A T A

7. PE/VC monthly headline trends: investments PE/VC investments: split across deal segments (value in US$m) 79 169 100% 196 326 229 492 191 215 991 82 106 889 857 90% 523 420 848 338 2,034 455 80% 1,664 695 411 729 2,174 554 871 1,354 1,769 76 70% 980 558 60% 431 976 3,435 387 1,581 2,284 553 50% 260 391 358 554 1,359 1,216 40% 1,161 634 872 2,054 30% 217 1,490 327 2,261 20% 735 1,793 71 2,482 1,984 1,223 1,012 1,324 10% 311 518 642 571 209 0% Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Growth Buyout Startup PIPE Credit investment PE/VC investments: split across deal segments (number of deals) 100% 4 6 5 7 5 9 17 12 15 25 90% 24 7 10 23 6 15 10 37 5 80% 13 20 15 7 28 10 70% 60% 13 42 50 41 51 50% 48 39 64 27 57 42 39 40% 64 45 30% 4 6 6 6 5 20% 3 3 5 9 5 3 17 20 5 18 10% 2 18 13 17 13 16 12 16 6 12 9 0% Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Growth Buyout Startup PIPE Credit investment Page 7 E Y A N A L Y S I S O F V C C E D G E D A T A

8. PE/VC investments: split by sector Top sectors by value (US$m) Top sectors by volume 548 18 Financial services Financial services 260 13 254 12 533 11 E-commerce Retail and consumer products 404 5 403 425 4 10 Infrastructure Real estate 692 6 1,830 6 413 10 Real estate Technology 236 6 463 10 269 8 Cement and building products Food and agriculture 5 2 228 8 Retail and consumer products Automotive 18 6 1,038 2 146 7 Automotive E-commerce 89 11 165 142 10 5 Food and agriculture Healthcare 22 3 7 2 127 3 Technology Infrastructure 34 7 584 6 80 12 Others Others 1,008 22 699 16 Aug-23 July-24 Aug-24 Page 8 E Y A N A L Y S I S O F V C C E D G E D A T A

9. PE/VC investments: split by deal size and deal type (excludes real estate and infrastructure) Deal size Deal type Volume Value (US$m) Value (US$m) Volume 14 826 >$1000m Growth 7 422 8 1,882 $500m - $1000m 47 684 2 1,500 Start-up 45 632 5 1,175 27 387 $100m - $500m 5 965 7 1,074 269 2 2 123 Buyout $50m - $100m 3 581 5 273 3 182 4 275 13 421 $20m - $50m 11 301 215 10 7 222 PIPE 104 8 8 113 504 16 $10m - $20m 11 146 4 61 79 6 50 241 Credit 97 8 <$10m 35 151 101 3 29 111 Aug-23 July-24 Aug-24 * PIPE: Private investment in public equity Note: Deal value not available for six deals in August 2023, four deals in July 2024 and one deal in August 2024 Page 9 E Y A N A L Y S I S O F V C C E D G E D A T A

10. Top PE/VC investments Top PE/VC investments, excluding infrastructure and real estate, in August 2024 Company PE investors Sector Stage US$m Stake (%) General Catalyst, Dragon Fund , EPIQ Capital and others KiranaKart Technologies (Zepto) E-commerce Start-up 340 7 DMI Finance Mitsubishi UFJ Financial Group Financial services Growth 334 11 Ebco Warbug Pincus Cement and building products Buyout 269 75 InCred Wealth, J&A Partners, ASK Financial Holdings and others Oravel Stays (Oyorooms) E-commerce Growth 124 5 Prosus, Peak XV, Steadview Capital and others BlueStone Jewellery and Lifestyle Retail and consumer products Growth 108 11 Ather Energy NIIF Automotive Growth 71 5 PNB Housing Finance GIC Financial services PIPE 52 2 Tata Technologies JP Morgan Technology PIPE 49 1 Smart Software Testing Solutions (OpKey, PCloudy) PeakSpan Capital and others Technology Start-up NA 47 Kalyan Jewellers India GIC Retail and consumer products PIPE 47 1 Page 10 E Y A N A L Y S I S O F V C C E D G E D A T A

11. PE/VC investments in infrastructure and real estate sectors Top sectors by value (US$m) Top sectors by volume 3 425 Infrastructure Infrastructure 7 692 6 1,830 10 413 Real estate 6 Real estate 236 6 463 Aug-23 July-24 Aug-24 Page 11 E Y A N A L Y S I S O F V C C E D G E D A T A

12. PE/VC investments in infrastructure and real estate sectors Deal size Deal type Value (US$m) Volume Volume Value (US$m) 6 664 >$1000m Growth 96 5 1 1,100 5 379 $500m - $1000m 1 550 4 163 Buyout 2 634 3 525 116 2 $100m - $500m 4 906 3 11 3 238 Start-up $50m - $100m 3 97 3 243 2 185 1 48 $20m - $50m 3 87 3 95 PIPE 2 2 1 15 4 1,669 $10m - $20m 3 38 3 11 Credit 99 1 <$10m 2 10 128 1 2 8 Aug-23 July-24 Aug-24 * PIPE: Private investment in public equity Note: Deal value not available for one deal in July 2024 and two deals in August 2024 Page 12 E Y A N A L Y S I S O F V C C E D G E D A T A

13. Top infrastructure and real estate investments Top infrastructure and real estate investments in August 2024 Company PE investors Sector Stage US$m Stake (%) Fourth Partner Energy IFC, ADB and DEG Infrastructure Growth 275 NA Continuum Green Energy Climate Assets Fund I Infrastructure Growth 150 15 JV Ventures and Terminus Group Platform (Madison) JV Ventures Real estate Growth 100 50 Supertech’s stalled project in Noida Kotak Investment Real estate Growth 91 NA 211-acre land acquisition in Chennai Blackstone and Hiranandani Group (JV) Real estate Buyout 84 100 Page 13 E Y A N A L Y S I S O F V C C E D G E D A T A

14. Key trends August 2024 recorded 28 exits worth US$2.8 billion, compared to US$4.3 billion in August 2023 across 37 exits. August 2024 recorded total fundraises of US$828 million, across 12 funds, compared to US$1.5 billion raised in August 2023 and US$434 million in July 2024. ► ► Exits Fundraise Open market exits were the highest in August 2024 at US$2.3 billion across 13 deals, followed by PE-backed IPO at US$441 million. ► US$500 million raised by 360 ONE WAM was the largest fundraise in August 2024. ► The largest exit in August 2024 saw Antfin Singapore Holding selling a 2% stake in Zomato for US$570 million. ► Page 14 E Y A N A L Y S I S O F V C C E D G E D A T A

15. PE/VC monthly headline trends: exits US$m # Total PE/VC exits 45 5,000 39 37 40 34 33 4,000 31 35 28 30 24 24 3,000 22 22 22 25 19 16 20 4,340 2,000 3,495 15 2,949 2,777 2,649 2,555 2,502 10 1,000 1,868 1,578 1,373 1,221 5 1,050 747 0 0 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Value (US$m) # of exits US$m PE/VC exits: split across asset classes 5,000 284 4,000 888 3,000 111 801 537 632 1 4,056 2,000 431 2 162 25 2,607 2,502 2,444 143 2,240 120 2,148 1,000 2,017 73 1,436 1,416 1,346 1,078 930 674 - Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Other sectors (US$m) Real estate (US$m) Infrastructure (US$m) Page 15 E Y A N A L Y S I S O F V C C E D G E D A T A

16. PE/VC monthly headline trends: exits Top sectors Deal type Value (US$m) Volume Volume Value (US$m) 914 5 E-commerce 2,250 13 115 4 602 5 Open market 582 5 537 3 Real estate 19 2,476 284 1 461 5 Financial services 441 5 438 3 1,550 16 IPO 87 1 442 3 Retail and consumer products 1 548 6 169 3 86 8 Technology 1,425 2 Strategic 1,628 4 116 1 Pharmaceuticals 1,836 3 4 221 2 2 86 2 Automotive 73 41 3 Secondary 204 6 1 Logistics and transportation 109 1 1,307 7 28 10 3 1 Healthcare 2 1 Buyback 4 Others 4 2 9 1 156 4 Aug-23 July-24 Aug-24 Note: Deal value not available for nine exits in August 2023, seven exits in July 2024, four exits in August 2024. Page 16 E Y A N A L Y S I S O F V C C E D G E D A T A

17. Top exits Top exits in August 2024 Company Sector Seller Buyer Stage US$m Stake (%) Zomato E-commerce Antfin Singapore Holding NA Open market 570 2 Nexus Select Trust Real estate Blackstone NA Open market 505 22 Kalyan Jewellers Retail and consumer products Warburg Pincus NA Open market 428 6 BrainBees Solutions (Firstcry.com) E-commerce Softbank, PremjiInvest, TPG and others NA IPO 244 8 PNB Housing Finance Financial services General Atlantic and Asia Opportunities V NA Open market 209 8 PB Fintech (Policybazaar) Financial services Tencent NA Open market 199 2 Tata Technologies Technology TPG Rise Climate NA Open market 147 3 Akums Drugs and Pharmaceuticals Pharmaceuticals Quadria Capital NA IPO 116 9 MedPlus Health Services E-commerce Warburg Pincus NA Open market 100 11 Craftsman Automation Sunbeam Lightweighting Solutions Automotive Kedaara Capital Strategic 45 100 Page 17 E Y A N A L Y S I S O F V C C E D G E D A T A

18. PE/VC monthly headline trends: fundraise Fundraise US$m # 4,000 14 12 12 10 10 3,000 10 9 9 8 8 8 7 7 2,000 6 6 6 5 2,816 2,402 4 3 1,000 1,461 1,343 2 1,125 1,076 828 608 437 434 401 145 363 - 0 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Total funds raised (US$m) Total # of funds raised Page 18 E Y A N A L Y S I S O F V C C E D G E D A T A

19. Fundraise Top fundraise in August 2024 Status Fund PE/VC GP US$m Strategy Secondaries fund which will also invest in companies planning to go public within the next two years Raised 360 ONE Secondaries Fund 1 360 ONE WAM 500 Sectors excluding 'risky sectors' such as cryptocurrencies, gaming and peer-to-peer (P2P) lending Announced Trifecta Capital Fund 4 Trifecta Capital 240 Raised Bharat Value Fund Bharat Value Fund 119 Pre-IPO investment opportunities in Indian growth-stage enterprises Raised Ankur Capital Fund 3 Ankur Capital 48 Early-stage start-ups in agri-tech, climate and deep-tech segments Raised Sauce VC Fund 3 Sauce VC 44 12 to 15 consumer brands in the early stages Page 19 E Y A N A L Y S I S O F V C C E D G E D A T A

20. About EY Private Equity EY Private Equity Services Services

21. About our Private Equity Services practice EY has been working with the private equity industry for more than 25 years, with approximately 25,000 seasoned professionals worldwide dedicated to the industry and its business issues. EY serves 74% of the top 300 PE firms included in the Global PEI 300 firms list. Private equity firms, portfolio companies and investment funds face complex challenges. Successful deals depend on the ability to move faster, drive rapid and strategic growth, and create greater value throughout the transaction life cycle. EY taps its global network to help source deal opportunities and combines deep sector insights with the proven, innovative strategies that have guided the world’s fastest-growing companies. In India, EY is among the leading providers of advisory, tax, transactions and assurance services. We are also one the best professional services brand* in India, which is a testimony to our relentless commitment to deliver exceptional client service and create a better working world. ► Our India Private Equity Services practice has been among the top advisors for private equity deals over the past ten years. EY has been awarded the “Most Active Transaction Advisor” award by Venture Intelligence for 2009-2013 and the “Investment Bank of the Year, Private Equity” award by VC Circle in 2012, 2017 and 2020 and for M&A in 2018 and 2019. ► EY has been ranked a #1 Financial Advisor for over a decade across Mergermarket, Thomson Reuters and Bloomberg**. Our position as the foremost M&A advisor in the Indian mid-market enables us to create a robust deal origination pipeline for our PE/VC clients, acting as the tip of the spear of what is India’s dominant PE Services practice. ► Our Private Equity Services practice provides value to PE funds and their portfolio companies through its deep sector and service expertise. EY India is organized around key industry verticals in a matrix structure that enables us to offer a unique blend of industry expertise and functional skills. We actively track about 15 sectors with sector leads, driving our penetration in each of those sectors. ** for most number of deals Page 21 E Y A N A L Y S I S O F V C C E D G E D A T A

22. EY services for private equity We offer an array of services to Private Equity funds and their portfolio/investee companies through our various service lines. Partners (Personal tax) Fund assurance and management (Fund and fund management company audit, portfolio valuation, controls and process design and review, tax and regulatory compliance) Fund Raising (Marketing collateral, fund structuring, audit of fund performance) Funds Buyside support (Due diligence – financial, tax, business and commercial, forensics and background, HR, IT and environmental, modeling and valuations) Buy and sell side advisory (M&A, capital markets support, tax structuring, regulatory compliance, SPA advisory, integrated sell side advisory – building equity story, vendor due diligence (VDD), structuring marketing) Strategy and Transaction Services PE Value creation (Growth strategy, EBITDA improvement, Go to market) Portfolio Services Exit readiness (IPO, GAAP conversion, vendor due diligence, value creation, investor relations, exit preparation, sale mandates, exit structuring) Transition (PMO, 100-days plan, transaction Integration, GAAP conversion, governance, controls assessment, MIS development, process advisory, standard operating procedures, CFO services and compliance manager) Assurance (Statutory audit, tax compliance, risk management, corporate governance advisory, internal audits and fraud reviews) Tax and Legal (Tax advisory, tax accounting, ESOP advisory, global mobility, transfer pricing, and operating model effectiveness, tax policy and litigation, regulatory compliance) Distressed (Debt syndication, bank intermediation, restructuring, working capital management, cost reduction, insolvency, and bankruptcy advisory) Growth (Strategic options, Value Creation, technology security, IT strategy, operational improvement, SCM, market entry options and working capital management) Page 22 E Y A N A L Y S I S O F V C C E D G E D A T A

23. Ernst & Young LLP Contacts EY | Building a better working world P r i v a t e E q u i t y S e r v i c e s EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets. Varun Kaila Director E: Varun.Kaila@in.ey.com Vivek Soni Partner and National Leader E: Vivek.Soni@in.ey.com Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Narendra Rohira Partner, Transaction Tax E: Narendra.Rohira@in.ey.com Nachiket Deo Partner, Transaction Tax E: Nachiket.Deo@in.ey.com Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today. Subramaniam Krishnan Partner, Tax & Regulatory Services E: Subramaniam.Krishnan@in.ey.com Tejas Desai Partner, Tax & Regulatory Services E: Tejas.Desai@in.ey.com EY refers to the global organization, and December refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data, and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EYG member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com. S t r a t e g y a n d T r a n s a c t i o n s ( S a T ) Amit Khandelwal Managing Partner, SaT E: Amit.Khandelwal@in.ey.com Ajay Arora Partner and National Leader Investment Banking Advisory E: Ajay.Arora@in.ey.com Kuldeep Tikkha Partner and National Leader Transaction Diligence E: Kuldeep.Tikkha@in.ey.com Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit www.ey.com/en_in. Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at Ground Floor, Plot No. 67, Institutional Area, Sector - 44, Gurugram - 122 003, Haryana, India. A d v i s o r y Sardul Seth Partner, Business Consulting E: sardul.seth@in.ey.com Anurag Gupta Partner, Business Consulting E: anurag.gupta2@in.ey.com © 2024 Ernst & Young LLP. Published in India. All Rights Reserved. EYIN2409-009 ED None R e s e a r c h a n d I n s i g h t s Shantanu Kulkarni Manager E: Shantanu.Kulkarni@in.ey.com This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. Shubham Deshpande Assistant Manager E: shubham.deshpande@in.ey.com B r a n d , M a r k e t i n g a n d C o m m u n i c a t i o n s HS Bhavisha Jogi Vice President E: Bhavisha.Jogi@in.ey.com Harshpreet Singh Associate E: Harshpreet.Singh@in.ey.com

24. About IVCA IVCA

25. Contacts IVCA About IVCA The Indian Private Equity & Venture Capital Association (IVCA), is the apex body promoting the Alternative Investment Funds (AIFs) in India and promotes stable, long-term capital flow (Private Equity (PE), Venture Capital (VC) and Angel Capital) in India. Rajat Tandon President, IVCA E: Rajat.Tandon@ivca.in Aakriti Bamniyal Senior Vice President, IVCA E: aakriti@ivca.in With leading VC/ PE firms, institutional investors, banks, corporate advisers, accountants, lawyers and other service providers as members, it serves as a powerful platform for all stakeholders to interact with each other. Being the face of the Industry, it helps establish high standards of governance, ethics, business conduct and professional competence. With a prime motive to support the ecosystem, it facilitates contact with policy makers, research institutions, universities, trade associations and other relevant organizations. Thus, support entrepreneurial activity, innovation and job creation.