Institutional investor Oister Global and venture capital firm Tribe Capital India have teamed up to launch a secondaries franchise in India, targeting $500 million in investments over the next two years, according to a joint press statement.
The move seeks to capitalise on India’s rapidly growing secondaries market, which has seen $7.7 billion in transactions over the past five years. The partnership comes as investors increasingly look to monetise positions in the Indian private equity and venture capital space.
With a pipeline of identified investments, the firms aim to leverage their complementary strengths — Oister’s deep local market expertise, and Tribe Capital India’s quant-driven diligence.
Secondaries, which involve buying and selling pre-existing investor stakes in private companies, have been rivalling amounts raised via IPO exits during the same period, according to the statement.
Globally, the secondaries market is estimated at $130 billion, but the Indian market is still in its infancy. Secondaries could transform the market by offering more qualified investors a way to access private equity deals, a trend similar to how IPOs reshaped public markets, said Sandeep Sinha, Co-CEO, Oister.
“In the first half of 2024, 62 per cent of startup deals valued between $50-500 million were secondary transactions or buyouts,” said Raj Snehil Juneja, Co- founder, Tribe Capital India. “As companies with strong unit economics prepare for potential IPOs, we expect demand for secondaries to soar.”
Oister Global has invested in funds such as Blume Ventures, Stride Ventures, and Filter Capital. Tribe Capital India is the Indian arm of California-based Tribe Capital, which has assets under management of $1.7 billion. The India fund is independent of Tribe Capital US and would have no involvement with its operations.
First Published: Sep 23 2024 | 6:37 PM IST
By Companies
Source: Companies