"E-commerce contributed significantly to the surge in the private equity investments during the calender year 2014. This is expected to continue as e-commerce businesses attempt to keep themselves well capitalised.

Online marketplaces like Flipkart and Snapdeal led the race, followed by niche companies such as Urban Ladder and OlaCabs.

"The e-commerce sector is expected to continue on the growth trajectory in 2015, with more investments driven by likely improvements in regulatory environment and policy," PwC India leader, Technology, Sandeep Ladda said.

As per the report, the IT & ITeS sector was followed by the banking and financial industry which attracted a total investment of $563 million.

Mumbai made a comeback to the top slot with regard to PE investments -- both in terms of value and volume of deals -- in the quarter with investments worth $1.01 billion from 29 deals.

Interestingly, smaller cities such as Thrissur in Kerala and Jaipur in Rajasthan also hogged the limelight with $200 million from one deal and $112 million from two deals, respectively.

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