At a Glance
Tiger Global Management, the American investment firm, is on a mission to turn local young Indian firms and startups. Reports speculate that the firm plans to invest about $3 billion in Indian startups to help them attain “unicorn” status (those valued over a billion).
In the process, reports state that the giant investor is in the last stage of writing more than 25 checks, ranging from a few million to over $100 million, all in this year. They had invested in Infra. Market, Innovaccer, and two others startups that attained unicorn status this year. More is yet to come.
“Tiger Global has been very optimistic in India every two or three years,” an investor states.
Tiger Global’s interests in the Indian market are not new. In 2009 and in 2012, the investor had helped Flipkart and Ola when they were struggling to raise funds from Indian investors
While Tiger Global was in partnership with Lee FIxel, they had backed several young firms such as Myntra, Inshorts, Ather Energy, and even Saavn.
India is also in a position to act as a key player for the global firm in the next few years. Reports suggest that about 100 startups in India, the third-largest startup hub, would become unicorns. Radical changes in the Indian corporate landscape owing to changes in its regulatory and business environment have greatly benefitted innovation and a surge in the number of highly-valued unlisted companies, a venture capitalist who has invested along with Tiger Global states.
Financial innovation has also been accelerating in India with applications like UPI-backed bank account access, mobiles, and biometric IDs like the Aadhar, which are beneficial. Smartphone and internet penetration has been significant in India as well. Data shows that about 760 million users shall have smartphones in India by 2021, with a 40 percent penetration.
More to the picture
The investment frenzy has reached a stage where the firm has begun investing in months-old startups such as Reshamandi.
While it is beneficial for startups, other investors feel that when Tiger Global values a company above a level where other investors, with the exception of a few, cannot close the fund in the subsequent rounds.