Oister Global, Tribe Capital India to launch $500 million secondary market-focused fund

MUMBAI: Local investment firm Oister Global and the local branch of an American venture capital firm The capital of the tribe have partnered to launch a $500 million fund to support high schools startup offers. In the secondary transaction, the company’s shares are changing hands between investors and no fresh capital is being injected into the company. The investment will be spread over two years, the two companies said in a joint statement on Monday.
Development occurs when secondary transactions in startups have gained momentum. Earlier this year, Temasek and Fidelity Management & Research Company bought $200 million worth of Lenskart shares in a secondary deal, while Verlinvest and Goldman Sachs sold parts of their stakes in cosmetics startup Purplle Abu Dhabi Investment Authority (ADIA) during the company’s $120 million funding round through primary and secondary deals. In the first half of 2024, 62% of startup deals in the domestic market worth $50 million to $500 million were secondary deals or buyouts, said Raj Snehil Juneja, co-founder, Tribe Capital India.
In India, the secondary market is still in its early stages and there is room for growth. Globally, the secondary market is estimated to be worth over $130 billion. “The launch of this franchise aims to leverage the growing demand and bring unmatched expertise to the table… secondary transactions will be a tipping point for qualified investors to enter private markets, just as IPOs (initial public offerings) revolutionized access to public markets,” said Sandeep Sinha, co-CEO, Oister. As companies with strong business fundamentals prepare for potential IPOs, demand for secondary transactions is expected to grow rapidly, Juneja added. A host of Indian startups like Swiggy, MobiKwik are lining up for a public listing.
The $500 million fund will be set up as an alternative investment fund (AIF). Oister Global and Tribe Capital will invest their own capital in the AIF, as well as pool capital from other investors, which will then be used to fund secondary transactions.