According to a letter delivered to its limited partners, or sponsors, on October 6, India has become a key focus of Tiger Global’s ambitions, even as the New York-based investment firm targets a corpus of $6 billion for its new venture capital fund.
According to foreign media sources, the current fund, which wants to raise $6 billion, is considerably lower than the $12.7 billion technological vehicle it closed earlier this year, but reports indicated that the fund size was initially anticipated for more than $8 billion.
Tiger Global continues to find the strongest risk-adjusted returns in early-stage enterprise software and FinTech companies in the US and India, where it has invested the majority of the PIP 15 (Tiger Global Private Investment Partners LP) fund during the past several years.
Tiger Global, one of the biggest tech-focused funds in the world, claimed that its investment in India’s OfBusiness, a business-to-business (B2B) e-commerce company for the purchase of raw materials, has been one such bet where it has a sizeable holding and the company has experienced rapid growth with attractive margins.
OfBusiness, valued at close to $5 billion, is also supported by Japan’s SoftBank and Alpha Wave.
Tiger Global claims that because it was able to invest small amounts for substantial ownership in great enterprises, its average investment size was reduced to $30 million.
