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

Homegrown investment firm Oister Global has partnered with Tribe Capital India, a branch of the Silicon Valley-based Tribe Capital, to launch a new $500 million fund aimed at secondary transactions in India.

Named the Oister Tribe Ace Fund, the venture will focus on secondary market investments, which involve existing investors selling their shares rather than the company issuing new ones. 

India's secondary market gains momentum

India's secondary market has seen significant growth, with approx

Homegrown investment firm Oister Global has partnered with Tribe Capital India, a branch of the Silicon Valley-based Tribe Capital, to launch a new $500 million fund aimed at secondary transactions in India.

Named the Oister Tribe Ace Fund, the venture will focus on secondary market investments, which involve existing investors selling their shares rather than the company issuing new ones. 

India's secondary market gains momentum

India's secondary market has seen significant growth, with approximately $7.7 billion worth of secondary transactions completed over the last four to five years.

Tribe Capital India co-founder, Raj Snehil Juneja, pointed out that in the first half of 2024 alone, 62% of startup deals valued between $50 and $500 million were secondary transactions.

"The Indian private equity and venture capital sectors are ripe for secondaries, with increasing numbers of investors seeking to monetise their positions," he said.

As companies with strong unit economics prepare for potential IPOs, the demand for secondary transactions is expected to rise even further.

Sinha highlights strategic vision behind the fund

The Oister Tribe Ace Fund will deploy $500 million across several startup deals over the next two years.

Sandeep Sinha, co-CEO of Oister Global, emphasized the significance of this partnership, saying, "We are excited to partner with Tribe Capital India, whose quant-driven investment approach and data expertise perfectly complement Oister's deep local knowledge and on-ground network."

The strategic collaboration aims to drive the growth of India's secondary market, offering opportunities for investors to enter the private markets in a similar way to how IPOs opened up access to public markets.

Investment approach and initial plans

What sets this fund apart is its unique approach to investment. Instead of raising a large fund upfront, Oister and Tribe Capital are selecting specific companies for investment first and then raising capital from limited partners (LPs) as needed.

This method, according to Sinha, provides more transparency to investors. The fund has already identified four companies in sectors such as financial services and tech-first ventures, with plans to invest $50 million in the coming months.

"India presents an incredible opportunity for secondary transactions. Our partnership with Oister creates tremendous synergies to capitalise on India's potential," said Arjun Sethi, co-founder of Tribe Capital India.