Tiger Global Raises $2.7 Billion for Latest Fund, Falls Short of $6 Billion Target

• ByStartupStory     |    June 19, 2023

Tiger Global, a prominent global technology-focused investment major, has successfully raised $2.7 billion for its latest fund. Although this amount exceeds the “first close” milestone, it falls short of the firm’s initial target of $6 billion. The fundraising process for Tiger Global’s 16th private equity fund commenced in October, and the company is now actively seeking additional capital, as reported by FT.

In October, Tiger Global introduced its 15th vehicle, the Private Investment Partners Fund 16 (PIP Fund 16), with a strategic focus on investing in enterprise themes, particularly in India, while capitalizing on a lower-valuation market. The investment firm shared in a letter to investors that PIP 16 would provide exclusive access to promising early-stage internet-based startups. The sectors targeted by Tiger Global encompass enterprise software, fintech, consumer companies, as well as artificial intelligence, machine learning, and automation. This initiative underscores Tiger Global’s commitment to leveraging growth opportunities in these dynamic sectors.

In mid-2022, Tiger Global successfully concluded its 15th equity fund, raising a substantial $12.7 billion. This amount is twice the size of the 16th equity fund announced in October of the same year. Notably, the final close falls short of the anticipated $8 billion that some investors were previously informed about. With investments totaling $45 billion worldwide, Tiger Global boasts an impressive portfolio, including over 100 investments in India alone. Remarkably, 30% of its Indian portfolio now comprises unicorn companies, demonstrating the firm’s significant presence and success in the Indian market.

Over the past year, Tiger Global has been actively involved in numerous funding deals, contributing to the growth of companies such as Pristyn Care, Koo, CoinSwitch Kuber, Moglix, Apna, slice, Captain Fresh, CRED, OfBusiness, Chaayos, Reshamandi, and many others. However, it appears that Tiger Global has not remained unaffected by the global crisis in venture capital funding. In a similar vein, another global venture capital firm, Insights Partners, recently revised its deal size from $20 billion to $15 billion. These developments reflect the ongoing challenges faced by the venture capital industry amidst the current global scenario.

Indian startups are currently grappling with the effects of a funding winter, particularly in the growth and late stage funding segments. According to data from Inc42, growth stage funding experienced a decline in May, dropping to $347 million from $586 million in April. However, there was a notable surge in late stage funding, reaching $542 million in May, a 2.3-fold increase compared to the $234 million recorded in April 2023. Nevertheless, this figure still fell short of the impressive $1.05 billion raised by late stage startups in March 2023. These trends underscore the fluctuating landscape of funding for Indian startups during this period.

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