New York- based Tiger Global Management has emerged as the top investor in startups in India during the first four months of 2015.
According to tracking firm Venture Intelligence, the $10bn hedge fund led by Lee Fixel has invested a total of $269m across 11 deals in the January-April period.
Tiger Global Management is followed by venture capitalist Sequoia Capital, which invested $208m across 14 deals during the same period. Nexus Venture Partners also invested $73m by Kalaari Capital with $45m in investment across six deals.
Tiger Global Management, founded in 2001, has committed $269 million to 11 deals in January-April period, as against the $10 million for a single deal for the like period in 2014. The company is a major investor in Flipkart and has started to make early-stage investments in India.
Ravi Gururaj, a Bengaluru-based angel investor with holdings in more than 20 startups, was quoted as saying, “Hedge funds are tempted to jump into early-stage funding rounds, which was the exclusive territory of venture capital funds. Valuations are stepping up so fast between rounds that they feel compelled to come in early or get priced out in their traditional rounds. They want a horse to ride on and the rights to invest in later stages.”
Karan Mohla, executive director and head of digital consumer investment at VC firm IDG Ventures said, “The India focus of Tiger has helped the ecosystem immensely as it has given confidence to other global private equity and hedge funds to come to India. With the establishment of Bengaluru office, the momentum is going to get accelerated.They understand the Indian realities better now.”
According to a startup tracking firm Crunchbase, Tiger has raised $6.7 billion in funding while making 136 rounds of investments in 86 companies globally so far.
Tiger was the top investor in India at $422 million in 2014, despite a lean start. After April, with massive fund infusion into Flipkart, which raised a total of almost $2 billion in 2014, Tiger became the top fund.
A Comparative Study of Funding Ventures during Jan – Apr 2015:
|Firms||Investment ($m)||No of deals|
|Tiger Global Management||269||11|