Key Takeaways

After investing heavily in India’s startup ecosystem for over a decade, Alpha Wave has decided to shift its focus away from tech and tech-enabled businesses
The VC has struggled to find the right investment opportunities in India’s tech space over the last two years as startups have clung to bloated valuations
Alpha Wave now plans to adopt a PE-style strategy, where it will buy significant minority stakes in more traditional companies
Alpha Wave is walking away from Indian startups at a time when questions have been raised about the actual potential of India’s internet market

In 2021, at the height of venture capital bullishness, Falcon Edge, known for its bold investment strategies, launched a massive $10.7 billion fund dedicated to investing in startups globally. At the time, this fund was among the largest of its kind. By December of that year, the New York-based investment firm marked the first close of the fund, concurrently rebranding itself as Alpha Wave Global.

Flush with funds, a fresh brand identity, and an intensified commitment to startups, Alpha Wave soon carved out a reputation as a serious player in the late-stage tech investment landscape, jostling even with established names such as SoftBank and Tiger Global.

In the years since, India has emerged as the largest hunting ground for Alpha Wave, with the firm participating in 25 deals in the first half of 2022 alone, minting two new unicorns—Oxyzo and Dealshare—in the process.

All that changed in July 2022. Even as the global funding winter was setting in, Alpha Wave, for the first time in 18 months, did not invest in a single Indian company. In the 18 months since, it has invested in just 15 deals.