American investment firm Tiger Global has raised $3.75 billion in its latest venture capital fund named as ‘Tiger Global Private Investment Partners XI‘. The funds raised is touted as one of the largest fundraisings of its kind this year.
This 11th venture capital vehicle of Tiger Global is said to got closed on October 15 and will step up its investments in the Indian startups after three years of long gap of fresh investment it has made.
According to material given by Tiger Global to its funds’ investors, the fund will focus on consumer internet, cloud and industry-specific software, as well as direct-to-consumer companies in China, India and the US.
Tiger Global has made over $3.3 billion from Flipkart’s acquisition by Walmart, where WAlmart had acquired 77% of controlling stake in Flipkart. Tiger Global had invested close to $1 billion in Flipkart since 2009 and still owns around 5% stake in the e-commerce firm.
According to data by data intelligence firm, Preqin, Tiger Global’s fundraising is the highest VC fund to close this year. The highest previously had been two China-based funds — YF Capital’s Yunfeng III fund, which closed in July with $2.5bn, and Tunlan Investment’s Xiong’An Global Blockchain Innovation Fund, which closed in April with $1.6bn. However Sequoia Capital also raised $6bn of a planned $8bn global fund in June.
Tiger Global, one of the earliest big backers of India’s Internet ecosystem, was reluctant towards its future investments in India over questions on the fate of its investments in Flipkart and Ola. Also, Tiger Global’s Lee Fixel believed that the India’s Internet economy was not growing as rapidly as that of China’s.
In India, Tiger Global is likely to invest in new e-commerce ventures, logistics tech startups, B2B commerce firms, and digital media/content ventures in the country.
According to a statement given by a managing director of Tiger Global to Economic Times, the investment firm is expected to focus on mid to growth-stage investments and was seeking to lead funding rounds starting from $30 million
Tiger Global was last seen active when it participated in its existing portfolio firm Grofers’ $62 million fundraise in March this year
Tiger Management Corp., also known as “The Tiger Fund”, began investing in 1980 and is an American hedge fund and family office founded by Julian Robertson. The investment group now manages about $26bn, with the largest chunk, which nearly half, in its venture capital business.
Source – Financial Times