Temasek Holdings to increase pace of investment, diligence amid valuation reset

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HDFC Life and ICICI Prudential Life. Temasek's pace of follow-on investments in its own portfolio companies has also increased as the firm is doubling down on the winners in its portfolio, Bhandari, who is the managing director, Investment, for Temasek in India, said. “Manipal is a follow-on investment.

We had an 18% stake six years back. And consequently, that, in my view, is a key reason why we got comfortable with both the sector and the specific company. So, it does add a significant degree of comfort for us to then step in when the right opportunity presents."  Besides Manipal, the firm made follow-on investments in Ola Electric, Shiprocket and Country Delight.

Temasek’s India portfolio stood at $17 billion (MTM value at $21 billion) at the end of March 2023, which is 6% of its global portfolio. Given the increasing instances of corporate governance lapses at startups in the country, all global investors, including Temasek have taken note. The firm said it is looking to increase scrutiny and diligence on potential investments.

"Globally, we will be a lot more focused on areas where we may not have been as focused earlier, like third party diligence. We have been getting third party diligence for many years, but we will increase our intensity now. Ultimately, we cannot diligence everything but you can do your best.

And despite doing everything, you will still have problems that you did not see," Lambah added. Investors across the board have seen cracks evolve in in portfolio companies over governance the last 12-15 months as the funding downturn has put pressure on growth metrics. Temasek Holdings was also one of the investors in Zilingo Pte, a Singapore-based fashion retailer, which wound down earlier this year.