There is an increasing trend of using investment bankers for technology deals in India. This was shared by Fazal Ahad, co-founder Merisis Advisors in a conversation with Stuti Roy of PTI. Merisis Advisors is a leading TMT investment banking advisory firm which has carved a name for itself in a short period of time with iconic client names in this industry like Ola Cabs and Housing.
Fazal shared that as part of the internal strategic planning at Merisis, and the team analyzed all the deals from January 2013. They separated those that are Tech focused – both in the M&A and Fund raising space, and analyzed the trends.
Investment Bankers involvements in Tech Deals in the last 30 months
Bankers understandably are absent in the sub-million dollar raise ups and as the deal size moves up, so does the involvement of the bankers. It peaks at ~67% for fund raising deals greater than $100 million
Tech-Deal Volume in the last 30 months
This is good news for Bankers like Avendus and Merisis who focus on the TMT sector. It also helps that the tailwinds are very strong as there is growth of ~43% CAGR (2013-2015) in the tech space, at all level of deal sizes.
The takeaway for Merisis – Sumir Verma co-founder of Merisis explains “ while the data clearly confirms our focus on the $10 + million deal size, we are also open to doing $5-10 million fund raise, as it gives us the opportunity of working with young entrepreneurs with whom we would like to create a relationship too early on in the lifecycle”.