Tiger Global fuels India startup boom with deal-making spree

Bloomberg

Tiger Global Management has examined at least a dozen deals with Indian startups in recent months, according to multiple people with knowledge of the talks, illustrating global investors’ fierce interest in the country’s technology ecosystem.
The ultra-secretive New York-based hedge fund has closed investments in at least half of these startups — nearly all of them in fintech or enterprise software segments. Hedge funds, venture capital firms, and the likes of South Africa-headquartered internet group Naspers Ltd are also chasing India’s rapidly growing consumer internet and enterprise software firms.
The rising interest in India occurs as investment in China’s recently booming startup sector faces a steep drop-off. It’s a radical progression from just a few years ago when global investors worried about the prospects for India. Fewer smartphones and expensive wireless-data plans restricted internet access to a tiny user pool in a country of 1.3 billion people, pushing investors to chase the handful of entrepreneurs building consumer internet startups.
Now cheap Chinese smartphones and inexpensive data rates offered by the aggressive telecom giant Reliance Jio Infocomm Ltd and its rivals are luring millions of users online every month.
There’s buoyancy also because India’s recent decisive election assured political stability, said venture capitalist Vani Kola, managing director at Kalaari Capital Advisors Pvt, prompting international funds to get back in the investment game. “Investors like Tiger Global are enthused that the market is stable and has reached a certain maturity,” she said. “There’s confidence in the depth of the market.”
This year is already being dubbed Tiger Global India redux by some. The influential investor is renowned for its early bets on high-profile Indian consumer internet startups like Ola, and its triumphant exit last year from most-valuable Indian startup Flipkart, which netted a $3 billion return.
In the first half of 2019, Tiger has already funded 13 Indian companies, according to researcher Tracxn Technologies Pvt, compared with 8 investments in 2018 and 6 the year before.