US investment firm Tiger Global Management is looking to raise a new fund with a target corpus of $6 billion to invest in early-stage startups in India as well as other markets.
The target corpus for the new fund is almost half of the amount raised for the previous fund, indicating a slowdown in investment momentum. Three people familiar with the technology investor’s plans said it could also affect fund flows into the Indian market.
According to a Bloomberg report, Tiger Global is looking to fund its $6 billion fund 16 primarily to support enterprise startups amid an undervalued environment in India.
A tenth of the new funding will come from its partners, as has been the case with most of its recent funds.
Tiger Global, in a letter to its investors seeking to raise the new fund, Private Investment Partner or PIP 16, said it would focus on “under-penetrated categories” such as Internet-enabled enterprise software, fintech with rapid and long-term growth potential. will focus. and consumer firm, Bloomberg reports.
According to one of the three people mentioned above, India remains a top market for Tiger Global, and the firm is increasing its focus on very early stage bets. Earlier this year, Tiger indicated that its portfolio companies in India should be prepared for a benign investment environment and liquidity tightening. However, it clarified that it would not shy away from investing in a follow-on round of its winning portfolio companies that demonstrated strong unit economics, a second person said.
Tiger is an aggressive early stage investor and has taken the likes of Flipkart, Zomato, ShareChat, Delhivery, Grow, Ola, Unacademy, Dream11 and Inframarket.
It has been one of the largest foreign investors investing in early stage startups in India.
Tiger Global raised $12.7 billion for its Fund 15, a large part of which went to Indian firms. In 2020, it invested $677 million in Indian startups and over $1 billion in 2021. Initially, Tiger Global began as a hedge fund business, but moved to launch its own private equity arm in 2003, headed by Chase Coleman and Scott Schlieffer.
Schleifer has supported startups in ed-tech, enterprise and food delivery in India, and believes in India’s investment and growth potential.
When contacted, a Tiger Global spokesperson declined to comment on the story.
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