Gurugram-based investment firm Oister Global and the growth equity and private equity Indian arm of Tribe Capital--Tribe Capital India to launch a new fund focused on secondary transactions.
This fund is expected to make investments amounting to $500 million in the next two years as secondary private market transactions in India gain momentum.
In the last 4–5 years, $7.7 billion has been transacted in the secondary market in India, according to Oister Global.
Tribe Capital India – an asset management company – was set up earlier this year and is co-owned by Tribe Capital’s cofounder Arjun Sethi, Shiprocket cofounder Vishesh Khurana and Raj Snehil Juneja, who has been investing in Indian startups.
“The Indian private equity and venture capital sectors are ripe for secondaries, with increasing numbers of investors seeking to monetise their positions. In the first half of 2024, 62 per cent of startup deals valued between $50-500 million were secondary transactions or buyouts. As companies with strong unit economics prepare for potential IPOs, we expect demand for secondaries to soar,” said Raj Snehil Juneja, Cofounder of Tribe Capital India.
Oister Global has earlier backed firms such as Blume Ventures and Stride Ventures.
A secondary deal is between existing and incoming investors, and the cash doesn’t go into the company.
There has been a growing trend of secondary stake sales across late-stage startups such as Lenskart, Meesho, Purplle, Swiggy, Ather Energy, Healthkart and Shadowfax.