Synopsis
Oister Global has launched ACE Fund III, a Rs 500 crore fund focused on startup secondaries. This initiative partners with Tribe Capital to meet rising demand for liquidity in India's startup sector. The fund targets late-stage, high-growth companies with strong unit economics and clear liquidity pathways, Rohit Bhayana, cofounder of Oister Global, told ET.Listen to this article in summarized format
The fund will back late-stage, high-growth startups with strong unit economics and clear liquidity pathways, Rohit Bhayana, cofounder of Oister Global, told ET.
The firm said the ACE strategy is built around what it calls a “glass box” structure, where the fund’s limited partners are shown the direction (names of companies) in which the fund plans to invest before they put money in the fund. Bhayana said this approach was primarily aimed at solving three key challenges in private markets — lack of transparency, long lock-in periods, and delayed liquidity.
“We created a glass-box structure where investors can see the broad direction of investments instead of investing in a completely blind pool,” Bhayana said.
He added that unlike traditional private market funds that typically run for 10 years, Oister has reduced the duration to five years while continuing to create liquidity opportunities throughout the investment cycle. “The companies we invest in are category leaders with very strong demand for their equity. That creates flexibility while exiting,” Bhayana said.
Oister’s earlier ACE funds have invested in companies such as Bluestone, Kuku FM, Shiprocket, BlackBuck, and Purplle. According to the firm, multiple companies from ACE Fund I have already listed, filed DRHPs, or delivered exits, while ACE Fund II has already seen valuation markups in subsequent funding rounds. Bhayana said Fund II was oversubscribed by 2x, reflecting strong investor appetite for secondary-focussed private market funds.
For ACE Fund III, the firm is looking at sectors such as MSME invoice financing, grooming and personal care, digital identity verification, organised intercity mobility, and few others. Bhayana said the larger investment theme is focussed on “market leaders in legacy sectors being disrupted by technology,” rather than pure consumer internet companies. The firm has already named the companies in its pitch deck for LPs and investors.
“These are age-old sectors with massive existing demand. What these new-age companies are doing is using technology, supply chain optimisation, pricing algorithms, digital infrastructure, and operational efficiency to dominate these sectors,” he said.
New fund post Diwali
The firm has already deployed more than Rs 1,000 crore across the ACE platform and expects to cross Rs 2,000 crore in assets by the end of the year, with another fund planned after Diwali. Bhayana said Oister typically invests in six to eight companies per fund, with an average holding period of around 3.5 years and multiple exit routes including IPOs, M&A, and secondary sales.
Oister added that nearly 98% of the capital raised across the ACE series has come from domestic investors, including family offices and HNIs, reflecting growing local appetite for private market secondaries.
Speaking about the broader opportunity in secondaries, Bhayana said nearly $180 billion of startup and alternative investment capital raised over the last decade is now maturing, creating a liquidity gap for early investors and venture funds. “Secondary funds are becoming critical for the ecosystem. If early-stage investors cannot see clear exit pathways, the investment cycle itself slows down,” he said.
