Temasek’s $10 billion investment strategy in unique India

Singapore’s Temasek is actively pursuing funding alternatives in India, with its portfolio worth reaching $50 billion, together with Singtel’s stake in Airtel. The agency has already deployed over $6 billion of the $10 billion earmarked for India by 2026–27 and stays assured in assembly its funding goal because of India’s strong home consumption and relative resilience to international geopolitical shifts. Temasek’s India investments span throughout varied sectors, together with conventional and new-age firms, with a deal with digitisation, consumption, growing lifespan, and sustainable residing.

Temasek sees India as a market with robust development prospects because of its home financial system. Vishesh Shrivastav, MD of Temasek’s India funding workforce, advised ToI that India is “pretty shielded in opposition to international geopolitical shifts and macro uncertainties on the again of sturdy home consumption, elevating the agency’s development prospects within the nation.”

The agency’s funding technique in India aligns with its international method. Temasek is specializing in digitisation, consumption, growing lifespan (healthcare), and sustainable residing (areas like EV).

Shrivastav stated that they do not see a cause to alter steerage.

“Geopolitics is without doubt one of the largest dangers to investments as we speak, and our focus is to construct a portfolio that’s resilient — one thing that’s much less impacted by shocks and the place the vary of outcomes is kind of slim. India is considerably distinctive within the sense that it is an financial system with few dependencies on the exterior world. It is largely a home financial system, and our portfolio displays that,” he added.

India at the moment accounts for about 8% of Temasek’s portfolio. That is nearly double its share from 5 years in the past.Temasek’s India investments embody Axis Bank, Haldiram’s, Manipal Well being Enterprises, Eternal (previously Zomato), and Lenskart. Earlier this yr, Temasek acquired a minority 9–10% stake in Haldiram Snacks Meals. The deal valued the family-owned firm at $10 billion.Temasek is enthusiastic about partnering with extra family-owned companies. The objective is to drive long-term worth creation.

Shrivastav famous {that a} market with younger, aspirational customers, coverage continuity, and “good macros” locations India on a greater footing. This makes Temasek assured about its prospects.

Temasek primarily makes direct investments in India. The agency’s capital permits it to take a position throughout the life cycle of an organization and make dangerous startup bets.

“Our capital is just not constrained by timeframe… one of the best firms we have been in hold compounding over a few years, and we have now no cause to exit them simply because the fund life is over. We invested in Zomato when it was a really small firm, and it was certainly one of our greatest performers,” Shrivastav stated.

Temasek will proceed investing in startups. This offers them an “capacity to see what’s coming sooner or later.”

Shrivastav stated that 3–4 startups (aside from Lenskart) in its portfolio are IPO prepared. He didn’t disclose the names of those startups.

Temasek has earmarked investments of about $10 billion for India over three years (by an estimated 2026–27). The agency has deployed over $6 billion from that pool. Temasek is “on monitor” to satisfy that focus on, in line with Shrivastav.

(With ToI inputs)