Tiger Global Management has closed a massive $3.75 billion global private investment vehicle. According to a report citing sources in the Times of India, The venture capital behemoth will continue its activities of backing tech startups in the Indian market, along with focus on its traditional hotbeds, the US and China.
This new investment vehicle, named Tiger Global Private Investment Partners XII, will be actively focusing on three regions — India, China, and the United States. According to multiple data sources, in India, the firm had closed 23 deals in 2019 after a three-year hiatus.
Tiger Global Management’s net internal rate of return is 24 percent as the firm made $5 billion on a $200 million investment in the e-commerce giant JD.com Inc. Recently, it made more than $1 billion on the Chinese online-services platform Meituan Dianping, which went public in 2018. Its investment in the e-cigarette company Juul has also been profitable.
Recently, Tiger Global’s head of private investments Lee Fixel, who started the firm’s India investments in 2006, departed from the firm, leading to speculation that its focus on the country will slow down. Fixel was behind some of the most profitable and iconic deals for the fund in India, most notable of them all being his early-backing of e-commerce giant Flipkart.
However Scott Shleifer, who took over the unit from Lee Fixel has turned even more aggressive. The firm is currently in talks with at least two startups for investments — Dream11 and Public.
According to media reports, Tiger Global Management as well as SoftBank Vision Fund and Prosus are in early talks to back sports fantasy startup Dream11 at a valuation of over $2 billion. Public, which is a location-based social video sharing platform, has been started by the firm’s portfolio company News In Shorts.
Although there is now increased scrutiny over valuations of private technology companies, money flow is continuing for early-stage and mid-stage startups. Apart from Tiger Global Management, firms like Accel and Sequoia have also raised corpus to fund startups.
Last month, Accel India closed a $550 million fund for back Indian startups while Sequoia Capital has reportedly raised $1.3 billion which will be used to back companies in India and Southeast Asia.