Tiger Global, a global tech-focused investment firm, has successfully raised $2.7 billion for its new fund, which is 55% less than its original target of $6 billion. The venture capital firm began raising money for its 16th private equity fund in October of last year and has now completed the initial phase, with plans to raise additional capital, according to a report from the Financial Times.
Last October, Tiger Global announced its 15th vehicle, the Private Investment Partners Fund 16 (PIP Fund 16), with a focus on investing in enterprise themes and in India, particularly in a lower-valuation environment. In a letter to its investors, Tiger Global stated that PIP 16 would provide access to early-stage internet-based startups in sectors such as enterprise software, fintech, consumer companies, as well as artificial intelligence, machine learning, and automation.
While Fund 15 closed in mid-2022 with a total of $12.7 billion raised, double the amount of Fund 16 announced in October, it still fell short of the anticipated $8 billion fund that some investors were previously informed about.
Tiger Global currently has over $45 billion in investments worldwide, with more than 100 investments in India alone. Additionally, 30% of its Indian portfolio consists of companies that have reached unicorn status.
Over the past year, Tiger Global has participated in numerous funding deals, including investments in Pristyn Care, Koo, CoinSwitch Kuber, Moglix, Apna, Slice, Captain Fresh, CRED, OfBusiness, Chaayos, Reshamandi, and more.
The challenges faced by Tiger Global in raising funds reflect the broader impact of the global venture capital funding crisis. Recently, another global VC firm, Insight Partners, reduced its deal size from $20 billion to $15 billion.
These developments come at a time when Indian startups are experiencing the effects of a funding winter, particularly in growth and late-stage funding. According to Inc42 data, growth stage funding declined from $586 million in April to $347 million in May, while late-stage funding increased 2.3 times to $542 million in May, although still lower than the $1.05 billion raised by late-stage startups in March 2023.
