After 18 months, Tiger Global resumes investments in Indian start-ups
What's the story
Tiger Global, the once-prolific investor synonymous with mega-deals and rapid unicorn creation, is exhibiting renewed interest in the Indian start-up ecosystem.
After an 18-month-long hiatus, the New York-based hedge fund has resumed funding start-ups like Captain Fresh, Infra.Market, EatClub, and Meesho.
The company has also redefined its investment strategy in India, now paying more attention to its existing portfolio companies and their founders.
This marks a major shift from its earlier hands-off approach to investing with a more measured approach.
Strategy shift
Increased involvement and regular interactions
The revamped strategy includes more involvement with portfolio companies on a monthly basis.
This includes regular requests for data sets, a practice that Tiger Global hadn't followed before.
The firm's key fund managers, including Deep Verma, are now spending more time in India to enable face-to-face interactions with company executives and founders.
Managerial presence
Verma's role in Tiger Global's new strategy
Verma, who has been with Tiger Global since 2012, now heads the firm's India and Southeast Asia operations from Singapore.
His frequent visits to India are part of the company's new strategy.
These visits enable more detailed discussions on profitability projections, monthly numbers, timelines, and potential collaborations with other portfolio companies.
Investment focus
Selective investment and focus on liquidity events
Tiger Global's new investment approach is selective, concentrating on existing portfolio companies that can offer an exit in the near term.
The firm is especially keen on growth-stage investments where there's visibility on a liquidity event within six to eight months.
This strategy favors companies close to an IPO or merger and acquisition (M&A), as they are more likely to get Tiger Global's funding in its current phase.
Asset retention
No rush to sell assets and smaller investments
Despite its focus on exits, Tiger Global isn't in a hurry to sell the assets.
The firm is also tweaking its strategy to back promising founders by making smaller investments.
"Tiger has also shown willingness to cut smaller cheques for us when we raise a new round, something it was hesitant to do earlier. It won't do the $5-6 million rounds but has expressed comfort to do the $30-40 million kind of rounds," a start-up founder told Moneycontrol.