The overall target for the ‘Ekkum TIH Emerging Opportunities Fund’ is $60.6 Mn, and it has already received a commitment of $3 Mn
The sector-agnostic fund will invest in mid-sized Indian companies, including startups, working in specialty chemicals, FMCG, electronics, food and agriculture, and healthcare or pharma
Inga Ventures has over two decades of experience in investment banking and offers financial and strategic advisory services
Mumbai-based investment banking firm Inga Ventures has partnered Singapore-based private investment fund TIH Ltd to set up a $15.1 Mn (INR 125 Cr) fund called ‘Ekkum TIH Emerging Opportunities Fund’ to invest in mid-sized Indian companies, including startups.
The overall target for the fund is $60.6 Mn (INR 500 Cr ), a statement said, adding that the fund has received a commitment of $3 Mn (INR 25 Cr) from its sponsors and affiliates.
The sector-agnostic fund will invest in mid-sized Indian companies, including startups, working in specialty chemicals, FMCG, electronics, food and agriculture, and healthcare or pharma. The fund will invest in companies with plans for business expansion and value creation, the statement added.
“With solid experience in dealing with emotions of founders, the fund will tap the best in industries and partner with them in their growth journey. The partnership with TIH brings the best combination of the strong network and long-term relationship of Inga and the investment experience of TIH,” said G. S. Ganesh, founder of Inga Ventures.
Inga Ventures has over two decades of experience in investment banking and offers financial and strategic advisory services. It has offered its services to companies like Neogen Chemicals, Ultrafresh Modular, Yasho, and Link Intime India so far, according to its website.
“We are delighted to partner with Inga, a veteran corporate investment banking firm in India with mid-cap segment focus. Their wide reach across the country presents great investment opportunities for us in the middle market space in corporate India. We are confident that the partnership will help both parties to expand opportunities from both direct investment and cross-board perspective,” TIH CEO Allen Wang said.
Founded in 1994 by Wang, TIH is a SGX-listed (Singapore exchange) private equity fund. Over the years, it has invested in companies working in diverse segments, including consumer and industrial products, healthcare, technology, media and telecommunications, food, manufacturing and chemicals.
TIH also holds experience in making cross-border investments and divestments.
The development comes at a time when the ongoing funding winter has resulted in a sharp decline in the funding raised by Indian startups.
According to an Inc42 report, Indian startups raised $3 Bn across 334 deals in Q3 2022, a decline of 82% on a year-on-year basis and 50% on a quarter-on-quarter basis.
The funding crunch has forced many startups to take various cost-cutting measures, including laying off employees. According to Inc42’s layoff tracker, Indian startups have laid off over 12,500 employees so far in 2022.
Despite this, PE and VC firms, including SphitiCap, Elev8 Venture Partners, Weave Capital, and All In Capital, have launched a number of India-focused funds recently to invest in startups. According to Inc42 data, the number of VC funds launched in the year 2022 till September 30 grew 2.2X to 71 compared to 33 in 2021. The funds launched in 2022 have cumulatively raised over $15 Bn.