2024-09-23 18:26:59 :
BENGALURU: Oister Global and Tribe Capital on Monday said they will jointly launch a $500 million secondary franchise to invest in India over the next two years.
“The secondary market in India’s private equity and venture capital space has matured, with more investors looking to monetize their positions. 62% of startup deals worth $50 million to $500 million in the first half of 2024 were Secondary transactions or acquisitions. As companies with strong unit economics prepare for potential IPOs (initial public offerings), we expect demand for the secondary market to surge,” Raj Snehil Juneja, co-founder, Tribe Capital India, said in a statement stated in a statement.
The partnership will leverage Tribe Capital India’s quantitative research and Oister’s Indian private markets expertise. Leveraging Oister’s nearly two decades of experience in the Indian investor ecosystem, the two entities have already identified first investments and will continue to build a strong pipeline.
“Secondary markets will be the turning point for accredited investors to enter private markets, just as IPOs revolutionized access to public markets,” Oister co-CEO Sandeep Sinha said in a statement. ” We are delighted to partner with Tribe Capital India, whose quantitatively driven investment approach and data expertise perfectly complement Oister’s deep local knowledge and on-the-ground network.”
While the country’s secondary market has steadily emerged as a substantial source of funding, this partnership is expected to propel India further forward and capitalize on growing demand. In the past four to five years, transaction volume has reached $7.7 billion, a figure comparable to the total capital raised through IPO exits during the same period, the investment firm said in a statement. Although the secondary market in India is still at an early stage, it is estimated to be over $130 billion globally.
As some investors are at the end of their fund life cycle, they believe India presents a huge opportunity for such deals as they seek liquidity and prepare to exit companies in which they have invested for quite some time.
Earlier this year, Gurgaon-based Oister Global, which invests in private equity (PE) and venture capital funds, said it was looking to deploy $Private market funds will reach Rs 4,500 crore in the next two years. The firm, known for backing investment firms such as Blume Ventures and Stride Ventures, also launched $The Rs 440-crore fund targets consumer-driven and emerging technology sectors in India.
Tribe Capital India, meanwhile, invests in, builds and acquires local companies in India. Its focus is on investing in smaller startups and accumulating larger stakes. Its portfolio companies include unicorns such as Apollo.io, Shirocket, Blackbuck and Docker.
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