Tiger Global raises $2.5B in new fund just seven months after scooping $1.5B VC fund

Global investment firm Tiger Global, one of the largest investors in Indian tech firms with investments in firms like Flipkart, Olacabs, Just Dial and MakeMyTrip, has raised $2.5 billion in its eighth fund, barely seven months after it scooped up $1.5 billion in April this year, as per a US Securities and Exchange Commission (SEC) filing.

The fund, called Tiger Global Private Investment Partners IX, saw participation from as many as 521 investors/limited partners, the filing showed.

Tiger Global, which manages both hedge and long-only funds besides venture capital investment vehicles, has been one of the most aggressive backers of Indian tech ventures.

It is the lead investor in Flipkart and is also a shareholder in some other marquee tech ventures in the country.

It had raised $1.5 billion in its eighth global venture capital fund focused on later-stage, privately held technology companies, from 415 investors/limited partners. This was two years after it scooped around $1.48 billion in a PE fund.

To that extent its latest fund comes in a record time. One of the reasons for this could be the huge amount it probably has had to commit to existing portfolio firms as part of follow-on funding rounds. Flipkart, where it is the single-largest shareholder, itself raised $1.21 billion this year alone.

Olacabs recently raised $210 million in a fresh round led by SoftBank.

To limit equity dilution with further funding in the future Tiger Global needs to commit more in some of its lead portfolio firms.

An email query to a spokesperson of Tiger Global on the latest fundraise did not immediately elicit a response.

Founded in 2001, Tiger Global invests in sectors across internet, technology, real estate, telecommunications, energy, media and retail with a focus on the US, China, India, Southeast Asia, Latin America and Eastern Europe.

In India, Tiger Global has also backed firms like Commonfloor, Caratlane, Freshdesk, Babyoye, Zovi, Hike, CarTrade, LimeRoad, Grey Orange, PolicyBazaar among others.

Globally, Tiger Global has invested in Southeast Asia-based taxi app GrabTaxi. It has also invested in the US, including companies like Harrys, Craftsy, Quora, Kitchensurfing, Hotel Urbano, Eventbrite, and One King’s Lane. Its famous investments include Facebook, LinkedIn, Russia’s Yandex and China’s Youku.

(Edited by Joby Puthuparampil Johnson)

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