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Tiger Global raises USD 3.8 billion, might lead USD 500 million round in Tencent-backed Dream11

Tiger Global has invested in 23 Indian technology companies last year.

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The US-based hedge fund Tiger Global, known for its knack of identifying potentially successful technology companies, has raised USD 3.8 billion for its investment vehicle—Tiger Global Private Investment Partners XII—meant to back startups in the US, China, and India.

“The strategy for the new fund remains the same as the previous fund,” a source told local media Times of India. According to market tracker Tracxn, Tiger Global invested in 23 Indian technology startups in 2019.

Quite many VC funds are seeking to raise India-focused funds as it continues to be one of the most sought-after markets for technology investments. In December 2019, Accel India closed a funding round of USD 550 million, while Sequoia Capital is working to raise USD 1.25 billion to be deployed across Southeast Asia and India. WeWork and Uber’s unimpressive performance last year did send out warning signals across the world signaling investors to clutch their investment purse tightly before betting on an idea. Despite this, at least four funds reached out to LPs and HNIs (Limited Partners and High Networth Individuals) to raise money for India investments.

As its second investment in India this year, Tiger Global might lead USD 500 million funding round in Dream11, India’s first gaming company which is valued at over a billion US dollars.

According to a local media Mint report, Tiger Global will invest around USD 200 million in the funding round and likely buy shares of Dream11’s early investors including Kalaari Capital, Think Investment, and private equity firm Multiples Equity. Quoting three people aware of the development, the same Mint report said the funding round would value the Mumbai-based fantasy game unicorn at USD 2.5 billion, more than double of what it was valued at in its previous funding round in April 2019.

The online gaming market is expected to be USD 1 billion worth by 2021 according to a KPMG report.

The 12-year-old mobile-based fantasy sports company counts VC funds like Tencent, Steadview Capital, Kalaari Capital, Think Investments, Multiples Equity, among others as its backers. Founded by Harsh Jain and Bhavit Sheth, Dream 11 hosts team-based multiplayer tournaments for sports such as cricket, football, and kabaddi, among others. People make their own teams based on real-life performances of individual players in a game or a tournament.

Although funding for late-stage companies in India has become scarce compared to early-stage investments, this is the second time Tiger Global has come in as a late-stage investor in an Indian company. It put in USD 200 million in Tencent-backed edtech unicorn Byju’s.