Oister Global, a Gurugram-based investment firm, has partnered with Tribe Capital India to launch a new fund focused on secondary market transactions. This fund aims to invest $500 million over the next two years as interest in secondary private market transactions in India continues to rise.

In the past four to five years, India has seen $7.7 billion transacted in the secondary market, according to Oister Global. Tribe Capital India, established earlier this year, is co-owned by Tribe Capital co-founder Arjun Sethi, Shiprocket co-founder Vishesh Khurana, and Raj Snehil Juneja, who has experience investing in Indian startups.

“The Indian private equity and venture capital sectors are ripe for secondaries,” said Juneja. “In the first half of 2024, 62% of startup deals valued between $50 million and $500 million were secondary transactions or buyouts. As companies with strong unit economics prepare for potential IPOs, we anticipate soaring demand for secondary sales.”

Oister Global has previously invested in firms like Blume Ventures and Stride Ventures. In secondary deals, transactions occur between existing and incoming investors, meaning the cash does not flow into the company itself.

A notable trend is the increasing number of secondary stake sales among late-stage startups such as Lenskart, Meesho, Purplle, Swiggy, Ather Energy, Healthkart, and Shadowfax.