Temasek To Invest $10 Bn In India Over The Next Three Years

Singapore’s sovereign wealth fund Temasek plans to invest $10 Bn in India over the next three years. 

Temasek’s managing director (MD) for India investments, Mohit Bhandari, told Reuters that the investment firm will pour the capital in sectors such as financial services and healthcare. 

Bhandari said that Temasek is “bullish” on India in the “long term” and plans to further increase its portfolio exposure to the country. 

As per its annual investor presentation released earlier this month, India accounted for 7% of Temasek’s total portfolio exposure in the financial year 2023-24 (FY24), up from 6% last fiscal.

The sovereign wealth fund pumped in a record $3 Bn in the country in the year ended March 2024. Going forward, the investment giant plans to increase its India headcount from 20 currently as its portfolio grows in the country.

“We are cognisant of the current economic and the geopolitical tensions that exist (in China) and to that extent we will align our portfolio accordingly,” Bhandhari was quoted as saying. 

It is pertinent to note that in its annual report for FY24, Temasek said that returns from the US and India helped it offset the underperformance in China’s capital markets.

Temasek saw its net portfolio value rise 1.8% year-on-year (YoY) to $288 Bn in FY24. India reportedly emerged as the third leading investment destination for the Singapore-based wealth fund during the period. 

Earlier, Temasek’s head of real estate and deputy head of private equity fund investments, Alpin Mehta, also said that the investment firm is witnessing new opportunities in India in sectors such as financial services, life sciences, technology, consumer and healthcare. 

This comes at a time when the sovereign wealth fund has aggressively scaled up its investments in the country. As per reports, Temasek has reportedly invested an average of $1 Bn to $1.5 Bn annually in India over the last 20 years. 

Temasek has invested in big names in the Indian startup ecosystem like Ola Electric, Zomato, Atomberg, upGrad, and Curefit to date. Many of these bets have also paid off. For instance, it exited insurtech platform Policybazaar’s parent entity PB Fintech by selling its 5.42% stake earlier this year for INR 2,425 Cr. 

On top of that, many of its portfolio startups, like Ola Electric and Pine Labs, are eyeing a listing on the bourses soon.