Tiger Global did not close any startup deals in India in January for the first time in two years
- ByStartupStory | January 31, 2023
In January 2023, Tiger Global Management, one of India’s most active private market investors, made no investments in any startups there, signaling a deteriorating funding crisis for the third-largest startup ecosystem in the world.
This was the company’s first month without investing in an Indian startup in two years. This occurred most recently in January 2021.
In January 2022, the New York-based hedge fund took part in nine investment rounds in India, according to information gathered by Moneycontrol through Tracxn. The data showed that, globally, it took part in just two investment rounds in January 2023—both outside of India—as opposed to 49 in January 2022 and 17 in January 2021.
Tiger Global participated in an average of four deals per month in 2022, the data showed, even though the hedge fund investor only concluded four agreements in the last quarter of that year. While it took part in 63 financing rounds in 2021, Tiger Global invested in 50 funding rounds in 2022.
The company has supported about 40 of India’s 107 unicorns and has been an active investor there. The hedge fund’s cautiousness and slow investment pace portend a trying time for the nation’s entrepreneurs, which depend on venture capital and private equity funding to survive.
What’s more, despite the fact that its competitors have been quite cautious, Tiger Global has been “very positive” about India’s startup scene. According to Moneycontrol, the hedge fund’s partners traveled to India at least four times in 2022 to meet with early-stage investors and consider potential investments.
According to media sources, Tiger Global plans to invest “primarily” in Indian companies through its upcoming $6 billion fund.
Tiger Global’s investment projections for 2022 confirm its positive outlook for India. In contrast to its competitors, the volume of its investments decreased by 20% in 2022. The volume of SoftBank’s investments fell by more than 70% throughout that time.
In contrast, Tiger Global invested almost 70% less in 2022 than the previous year in terms of value as it reduced the amount of its checks and took part in early-stage and Series A rounds. According to Moneycontrol, Tiger Global’s Series A participation increased by 80% in India from 2021 to 2022 despite a global decline of 11%.
Undoubtedly, due to macroeconomic headwinds, overall, PE/VC funding decreased by more than 80% in January compared to the same month the previous year. This has forced several firms to make drastic expense reductions. According to information gathered by Moneycontrol, at least 15 firms have let go of close to 2,300 employees in the first 30 days of the new year.
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