Tiger Global Raises $2.7 Bn For New Fund, Falls Short Of Initial $6 Bn Target

SUMMARY

The global venture capital firm started raising money for its 16th private equity fund last October

Last October, Tiger Global announced Fund 16 through which it reportedly planned to invest ‘largely in enterprise themes and in India’ and ‘in a lower-valuation environment’

Now, it has completed the ‘first close’ of its fund and looking to raise more cash

Global tech-focussed investment major Tiger Global has raised $2.7 Bn for its new fund.The raised capital is 55% less than the target fund of $6 Bn set by the investment firm.

The global venture capital firm started raising money for its 16th private equity fund last October. Now, it has completed the ‘first close’ of its fund and is looking to raise more cash, according to a FT report.

Last October, Tiger Global announced the 15th vehicle of the Private Investment Partners Fund called PIP Fund 16 (it skipped Fund 13), through which it reportedly planned to invest ‘largely in enterprise themes and in India’ and ‘in a lower-valuation environment’.

In a letter to its investors, Tiger Global stated that PIP 16 would benefit from differentiated access to compelling early-stage internet-based startups. Sectors that the VC firm was targeting include enterprise software, fintech and consumer companies, besides artificial intelligence, machine learning and automation.

Fund 15 marked its final close in mid-2022 raising $12.7 Bn, which is 2X of the 16th equity fund announced in October. It is to be noted that the fund is also less than the anticipated $8 Bn fund that some of its investors had previously been told about.

The VC firm has investments worth $45 Bn across the globe, with 100+ investments in India alone. Moreover, a whopping 30% of its portfolio in India is now in the unicorn club.

Tiger Global has participated in several funding deals over the last year including that of Pristyn Care, Koo, CoinSwitch Kuber, Moglix, Apna, slice, Captain Fresh, CRED, OfBusiness, Chaayos, Reshamandi and more.

It seems Tiger Global is not untouched by the global crisis in venture capital funding. Recently, another global vc firm Insights Partners also cut its deal size to $15 Bn from previously announced $20 Bn.

This comes at a time when Indian startups are seeing significant impact of funding winter, especially in the growth and late stage funding.

As per Inc42 data, growth stage funding declined month-on-month in May to $347 Mn from $586 Mn in April. However, late stage funding surged 2.3X to $542 Mn in May from $234 Mn in April 2023, although this number was much lower than $1.05 Bn raised by late stage startups in March 2023.