Singaporean state investor Temasek Holdings is set to more than double its India investments to $9-10 billion over the next three years, per several media reports.
Temasek, which has injected close to $4 billion in Indian companies over the last 15 months, would continue to do follow-on deals and tighten scrutiny and diligence on potential investments, the reports said. On average, the company has been investing $1 billion in India every year.
In one of its biggest bets this year, Temasek Holdings pumped in $2 billion for an additional 41% stake in Manipal Health Enterprises, which runs India’s second-biggest hospital chain, taking its total holding to 59%. In May, the company also co-led a $86-million funding round in Mumbai-based consumer appliances brand Atomberg.
At $17b, India currently contributes 6% to Temasek’s global portfolio of $287b
At $17 billion, India currently contributes 6% to Temasek’s global portfolio of $287 billion. The share stood at about 5% last year and 3% about five years ago, per the reports. New investments last year included Country Delight, a subscription-based food essentials platform; HealthKart, a nutrition and wellness supplements manufacturer and retailer; and OneCard, a mobile-first credit card issuance platform.
Temasek also counts insurance companies HDFC Life and ICICI Prudential Life, edtech platform upGrad, rural fintech firm SarvaGram, e-commerce allied service provider Shiprocket, and electric two-wheeler manufacturer Ola Electric Mobility among its portfolio companies.
Temasek had posted a rare loss of S$7 billion ($6 billion) for the financial year ended March 31, 2023, compared with a profit of S$11 billion ($8 billion) in the previous fiscal. It reported a net portfolio value of S$382 billion ($287 billion), which is a 5.2% drop from S$403 billion in the previous fiscal year. The drop in net portfolio value is the first since 2020.
The company cited geopolitical tensions and tough macroeconomic conditions—rate hikes, US-China tensions, Russia-Ukraine war, protectionism as well as energy transition—as factors that led to higher costs of capital, weighing on capital flows.
Meanwhile, China’s contribution to Temasek’s portfolio remained almost flat at 22% over the past decade, while the Americas’ share has increased from 10% per cent to 21%. Singapore remained its largest market with 28% share in global portfolio.
Globally, Temasek has backed some of the world’s biggest startups, including China’s Ant Group, San Francisco and Dublin-based payments processing group Stripe, San Jose-based financial automation software provider BILL Holdings, Inc, San Francisco-based payment processing company Visa Inc., among others.
