Tiger global management | Business Upturn

Tiger Global Management falls short of $6 billion target by 55%: Report

Viditha Ganji — Sat, 17 Jun 2023 16:17:42 +0000

Tiger Global Management, the renowned New York-based venture capital firm, has reportedly raised $2.7 billion for its latest private equity (PE) fund, falling short of its $6 billion target by 55 percent. According to the Financial Times, Tiger Global’s fundraising campaign began in October with the aim of investing in undervalued companies. While the firm achieved its first close milestone in January, securing more than half of the targeted amount, it still significantly trails the $6 billion objective, as revealed in a recent securities filing.

Tiger Global’s fundraising efforts for its 16th fund come after raising $12.7 billion for Fund 15 in March 2022. The firm had initially set out to raise $5 billion for its latest fund, scaling back its ambitions due to concerns raised by investors regarding potentially inflated startup valuations and the need for a market correction.

However, despite lowering its target to less than half the amount raised for its previous private equity fund in 2021, Tiger Global has encountered slower progress than anticipated. Investor caution and declining valuations have contributed to the challenges faced by the firm.

This situation is not unique to Tiger Global, as other prominent venture capital firms have experienced similar hurdles. Insight Partners, another New York-based firm, reportedly raised only $2 billion for a fund that initially aimed to secure $20 billion when it launched in June last year. SoftBank Group also disclosed that its Vision Fund 2 witnessed a significant decline of approximately 30 percent in the valuations of its private investments between April and December.

Since its establishment in 2001 by Chase Coleman, Tiger Global has emerged as one of the most active and successful venture capital investors. Over the past decade, the firm has backed numerous start-ups, amassing a portfolio that includes notable companies such as ByteDance (the parent company of TikTok), Shein (a fast-fashion retailer), and Stripe (a payments start-up). Despite the challenges posed by current market conditions, Tiger Global remains a prominent player in the venture capital landscape.

The firm’s ability to navigate evolving market dynamics and capitalize on promising investment opportunities will play a crucial role in determining its future success as it continues to support and shape the growth of innovative companies.

Intra-city logistics provider Porter raises ₹750 crores in the latest funding round

Cheryll Jain — Mon, 25 Oct 2021 13:16:47 +0000

Tech-based intra-city logistics provider Porter hit Rs. 3,750 crore (approx. $500 million) in valuation following the latest round of funding during which the company managed to raise Rs.750 crores, Porter announced on Monday, October 25.

In the series E round of funding led by Tiger Global Management and Vitruvian Partners, the company saw participation from existing investors with existing investors Sequoia Capital India and Lightrock India. Meanwhile, IndigoEdge acted as the exclusive advisor to Porter during the funding round.

With the fresh funds, the company will look towards expanding operations across the top 35 cities in India, acquiring new talent and establishing and strengthening its position in the on-demand logistics market. Porter has continuously recorded a triple-digit annual growth since its inception in 2014 and is currently operational in 13 cities in India with more than 5 million customers and 200,000 drivers on board.

Porter offers an intra-city logistics service and has launched an on-demand marketplace for LCVs and bikes. It is also becoming a key contender in packers and movers services.

The company has reported that its tech-based marketplace helps drivers earn 30 per cent more and also offers a lower waiting time to customers, factors that sets it apart from other competitors. Moreover, Porter is also one of the only logistics models that are 100 per cent asset-light and have a negative working capital cycle.

Commenting on the development, Porter’s Chief Executive Officer Pranav Goel stated that keeping in mind the current economic scenario, the successful funding round comes as a testament to the execution of the company’s entire team. He also expressed excitement to have onboard the two Global funds leading the company’s latest funding round.

PhonePe to allot stock options worth $200 million

Sarthak Yadav — Thu, 04 Feb 2021 21:00:33 +0000

A month after PhonePe the fintech giant was partially spun off from Flipkart, it allotted stock options worth $200 million to its 2,200 employees.

In December, Flipkart had announced the partial spin-off of PhonePe, as the digital payment firm had raised $700 million in funding, valuing it at $5.5 billion.

At that time, Flipkart had said the spin-off would offer PhonePe an opportunity to create a tailor-made equity incentive or ESOP programme for its employees.

PhonePe HR Head Manmeet Sandhu said in a blogpost, that, “In January 2021, we launched the PhonePe Stock Option Plan that gives every PhonePe employee the chance to own a part of the company. The $200 Mn plan allotted stock options to all 2,200 employees at PhonePe, enabling everyone in the organisation to benefit from its success.”

The PhonePe stock option plan is a core component of the company’s compensation philosophy “crafted to encourage collaboration, long term focus and organisation first thinking,” Sandhu added.

The company said it is committed to building an internal culture based on the inclusion and an abundance mentality and looking at removing the need for internal competition.

“Our compensation system aligns with this approach by removing variable pay based on individual performance for most roles. Instead, we use ESOPs to create the incentive for everyone to be invested in long-term organisational growth,” “by having ESOPs at a minimum of $5,000 for all levels, we enable every employee in the organisation to participate in the wealth generation opportunity…” the blog said.

As roles become more senior, ESOPs are part of the annual compensation for employees, translating into a larger component of their compensation is tied to the organisation’s success that encourages everyone to put the organisation first, it added.

PhonePe was founded by ex-Flipkart executives Nigam, Chari and Burzin Engineer, and was acquired by Flipkart in 2016. In 2018, Flipkart was acquired by Walmart, and PhonePe was also part of the transaction.

Post the transaction in December 2020, Flipkart owns 87% majority share in the hived-off entity with US-retail giant Walmart owning 10% and existing investors, including Tiger Global Management, holding the remaining 3%.

Byju’s to acquire Aakash Education Services Ltd for $1 billion

Sarthak Yadav — Tue, 12 Jan 2021 17:59:17 +0000

Byju’s which is tagged as India’s biggest online education startup is all set to acquire test prep leader Aakash Educational Services Ltd for $1 billion according to sources, as reported by Mint.

Mint reported that the deal will become the largest edtech acquisitions in the world and is said to close in the next two or three months, revealed the unidentified source.

Byju’s was founded by Byju Raveendran, a former teacher and the son of educators, who conceived the smartphone app in 2011. The Banglore based edtech giant is valued at $12 billion and has gained investors attention due to rise in demand of online lessons during the pandemic.

Byju’s is India’s second-most valuable startup is backed by the likes of Facebook founder Mark Zuckerberg’s and Chan Zuckerberg Initiative, Tiger Global Management and Bond Capital, co-founded by Silicon Valley investor Mary Meeker.

Blackstone Group-backed Aakash Educational Services runs Aakash Institute, which has over 200 centers and tutors students to gain entry into the country’s elite engineering and medical schools.

Its student count is over 250,000, according to its website. While online learning startups have thrived, offline tutoring centers have been badly hit by the pandemic, which has closed schools and tutoring centers since March last year.

According to the terms of deal Aakash’s founders, the Chaudhry family, will exit completely, while Blackstone will swap a portion of its 37.5% equity in Aakash for Byju’s stake, as reported by Mint.

Tiger Global Management plans to invest up to $100 million in Zomato

Himanshu Pandey — Mon, 10 Aug 2020 05:22:01 +0000

Tiger Global Management is an investment company that launches capital worldwide on both public and private sectors. The U.S. based investment company, Tiger Global Management, plans to invest up to $100 million and pump an additional $100 million into Zomato in advance of its initial public offering (IPO).

Zomato and Tiger Global have begun tentative negotiations for a combined investment of up to $200 million.

Temasek is one of Zomato’s key investors. While Zomato is planning for a $100 million investment from Singaporean investor Temasek.

According to the sources, the proposed funding of Tiger Global and Temasek is one of the big ticket investments that Zomato is looking to achieve forward for the anticipated IPO next year.

The goal of the company is to maximize the volume of cash raised and to show a consistent road towards productivity, if not overall sales, through the IPO.

Previously, owing to the increasing of anti-China beliefs and the shift in some policies to reject Chinese investment, the Ant-Financial’s investment has been postponed.

The pandemic of Coronavirus has placed a halt to food and beverage industry, as it calls for citizens to try home-care. COVID-19 crisis prompted the food-delivery organization to lay off staff, slash pay and retreat from a number of cities, but has subsequently recast its market, implementing contact less delivery to escape the economic repercussions of the pandemic.