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.
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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.
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