Tuesday, June 25, 2024
Outlook India
Outlook Business

Tiger Global Likely To Raise $6 Billion To Fund Early Stage Start-Ups: Report

The investment company will primarily back enterprise start-ups in India amid a lower-valuation environment

Tiger Global Likely To Raise $6 Billion To Fund Early Stage Start-Ups: Report
POSTED ON October 10, 2022 2:18 PM

Global private equity investment giant Tiger Global is likely to raise $6 billion for a new fund to invest in early stage start-ups including Indian start-ups, Mint reported citing three people aware of the matter. The new fund is nearly half of the amount it raised for a previous fund showcasing slowdown in pace of investments amid rising interest rates across the world, the report added.

Tiger Global is seeking to raise its $6-billion fund 16 primarily to back enterprise start-ups in India amid a lower-valuation environment, news agency Bloomberg reported.

10 per cent of the new fund will come from its partners, as was the case in a majority of its recent fund raisers.

Tiger Global is an early-stage investor and has backed unicorns like Flipkart, Zomato, Sharechat, Delhivery, Groww, Ola, Unacademy, Dream11 and Inframarket. It is one of the biggest overseas investors to invest in early-stage startups in India.

In a letter to its investors seeking to raise the new fund, Private Investment Partner or PIP 16, Tiger Global said it will focus on “under-penetrated categories" with rapid and long-term growth potential such as internet-enabled enterprise software, fintech and consumer firms, the Bloomberg report said.

According to one of the three people cited above, India continues to be a top market for Tiger Global, and the firm is increasing its focus on very early-stage bets. Earlier this year, Tiger had hinted that its portfolio companies in India must prepare for a benign investment environment and liquidity tightening. However, it made clear that it will not shy away from investing in follow-on rounds of its winner portfolio companies demonstrating stronger unit economics, a second person said.

  • Related Articles

    Saverin said much of the growth in the country will come from enterprise tech companies

    Indian Start-Up Market Is Worth Betting On: Facebook Co-Founder Eduardo Saverin

    The home interiors and renovation start-up has deployed part of the allocated capital in acquiring a majority stake in companies like Qanvast

    Livspace Earmarks $100 Million for Strategic Assets Acquisition in Home Interiors Segment

    The pre-series A investment round was co-led by Pentathlon VC and the Chennai Angels and the funding round saw the participation from T-Fund, Purvansh Holdings, Mumbai Angels and Hyderabad Angels and...

    Mumbai Angels Raises $2 Million For Recruitment Automation Start-Up TurboHire