Singapore-based venture capital firm Tanglin Venture Partners is targeting the final close of its second fund at over $100 million by the end of the third quarter this year, two sources aware of the development told DealStreetAsia.
The company is learnt to have already raised more than half the targeted amount in the fund’s first close a few months back, the sources added. Limited partners (LPs) that have invested in the second fund, so far, include funds and family offices based in the US and Southeast Asia.
Tanglin did not comment for this story.
At $100 million, the fund will be double the size of Tanglin’s first fund, which had closed at $51 million in October 2019.
The first fund, whose investment sweet spot was in the $3-4 million range, made investments in niche technology areas such as B2B supply chain, fintech, SaaS, and D2C brands in India and Southeast Asia.
While the first fund targeted Series A+ and Series B deals, the new fund aims to focus on Series A deals with an average investment cheque size of around $3 million. Tanglin has already made investments from the second fund, including a follow-on investment in the Indian health insurtech company Plum in a $16 million Series A round led by Tiger Global in May this year.
Tanglin’s first fund had invested in Indian and Southeast Asian startups that went on to raise big dollars.
For instance, India’s Moglix, a B2B e-commerce platform for manufacturing goods, in which Tanglin invested in 2019, became a unicorn in May this year after its $120 million fundraise by Falcon Edge Capital and Harvard Management Company.
Similarly, Public App, a location-based social network in India, raised $41 million in March 2021 from A91 Partners. Six months earlier, Public App had raised Rs260 crore led by Lee Fixel’s Addition, along with SIG and Tanglin.
Tanglin was also one of the early investors in the Indian neobank Open, having invested in its Tiger Global-led Series B round in 2019. Open is now learnt to be raising $100 million in a round led by Temasek.
Indonesia’s SME-focused fintech startup Bukuwarung raised $60 million from Peter Thiel’s Valar Ventures and Goodwater Capital in June this year. Bukuwarung had received investment from Tanglin in a seed round led by East Ventures in April 2020 and a pre-Series A funding round led by Quona Capital three months later.
Tanglin was founded by former Tiger Global Management executives Ravi Venkatesh and Edwina Yeo in September 2018. The company reportedly counts prominent Indian entrepreneurs among its investor base including Walmart-owned Flipkart’s co-founder Binny Bansal, Flipkart Group CEO Kalyan Krishnamurthy, Facebook’s Asia Pacific head Dan Neary and Indian B2B e-commerce startup Udaan’s co-founder Sujeet Kumar.