Tiger Global | 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.

Byju’s pays Blackstone $234 million related to Aakash deal: Report

Aryan Jakhar — Sat, 24 Sep 2022 06:27:47 +0000

According to a source intimately involved in the transaction, Byju’s paid Blackstone Inc. $234 million to settle its debts owed to the private equity firm as part of a $950 million deal to purchase Aakash Educational.

The payment made on Thursday was for a 38% or so stake in the learning centre network that Byju’s acquired in April 2021 that was controlled by Blackstone.

According to the source, Byju’s paid all of Aakash’s owners throughout the closing process with the exception of Blackstone because the PE company had agreed to deferred payment.

An inquiry for comment was not immediately answered by Blackstone.

The payment of debts coincides with the popular edu-tech firm in India, which was recently valued at $22 billion, suffering sharply increasing losses.

backed by Tiger Global For the fiscal year that ended in March 2021, Byju’s losses grew significantly to 45.64 billion rupees ($574.06 million), while its revenue decreased by 3%. View More

The pandemic-induced spike in demand for online education benefited the company greatly, and it attracted investments from some of the top venture capital funds and financiers, including Sequoia Capital and Mark Zuckerberg’s Chan-Zuckerberg Initiative, to finance its astronomical rate of expansion.

Byju’s, a company that came to represent the success of Indian startups, spent a total of $2.5 billion to acquire businesses including Aakash, Epic, a company based in the United States, Tynker, a platform for kids to learn how to code, Great Learning, and Toppr.

Social commerce startup DealShare raises $165 million in latest funding round

Vineet Jain — Sat, 29 Jan 2022 08:36:56 +0000

DealShare, a Jaipur based social commerce startup controlled by Merabo Labs Pvt Ltd, has entered the prestigious unicorn club after getting nearly $130 million from Tiger Global Management, Alpha Wave Global, and others.

The firm has been rapidly expanding its customer base and revenue, and it intends to reach $1 billion in sales in the coming months. The money received in this phase will be used to improve software and data analytics, as well as the growth of the company’s logistical network and geographical coverage.

In addition, a large physical retail franchise network will be established. SoftBank-rooted GlowRoad, BulBul, Meesho, Simsim, and Mall91, as well as Flipkart’s online shopping platform Shopsy, are anticipated to benefit from the financing.

DealShare, established in 2018 by Rajat Shikhar, Sankar Bora, Sourjyendu Medda, and Vineet Rao, emphasizes buyers and provides high-quality essentials at very low prices. It is believed approximately 70-80 percent of total spending in this market sector goes toward necessities, and inventory holding facilities are significantly smaller than in metro areas. It intends to increase the whole accessible market outside the top 5% of Indian citizens, similar to how the budget retailer DMart accomplished with offline stores.

According to a recent analysis from Accenture, the USD 492 billion worldwide social commerce market will expand 2 – 3 times faster than conventional e-commerce to 1.2 trillion USD in coming years. Another analysis estimates that by 2022, India’s social commerce consumer base might expand to 228 million.

GoMechanics startup raised $42 million, led by Tiger Global

Aayushi Singh — Wed, 23 Jun 2021 15:28:23 +0000

GoMechanic, the spare parts and multi brand car workshop has raised $42 million in Series C Funding round led by the Tiger Global Management, with Sequoia Capital India, Orios Venture Partners and Chiratae Ventures participating in the round.

GoMechanic which is run by Targetone Innovations Pvt Ltd, would use the fourth round of funding for expansion in Tier II and Tier III cities in India and also launch operations in the international markets. The firm provides their services in 35 cities . The goal of the firm has been to operate in more than 100 cities and triple the team size of 60 people.

The founders of GoMechanic said in a statement that they were thrilled to welcome Tiger Global as our partner at the cusp of their next phase of growth. They would continue to invest in expanding our operations and spare parts supply chain in India while also exploring global opportunities. Their intention was to make India the innovation hub in auto aftermarket technology and services similar to how it had become a manufacturing hub for a lot of global auto players.

The five year old startup had raised close to $59.8 million with Hero MotoCorp’s CEO and MD Pawan Munjal also investing in the firm.

The Gurugram based GoMechanic was founded in 2016 by Kushal Karwa, an MBA graduate from Indian Institute of Management (Ahmedabad), Amit Bhasin, Rishabh Karwa, and Nitin Rana.

Abhishek Mohan, Principal, Sequoia India, said that the firm had expanded geographically to several cities and made a deep foray into spares which was a $7 billion opportunity with large profit pools. The team had also deployed tech across the value chain exceptionally well. He also said that the additional growth capital would enable the company to grow faster and tap into newer opportunities.

Currently, GoMechanic has over 600 car repair workshops and the firm services over two million cars every year. The startup has planned to target 10 million customers by 2021.

Food Delivery giant Zomato denies media reports of filling drafts with SEBI

News Desk — Wed, 28 Apr 2021 14:26:25 +0000

Deepinder Goyal, the founder of Zomato in a tweet said, “Wouldn’t typically comment on speculation but had to stop the barrage of phone calls from the press and friends/family. Back to work (sic).”

According to a report of MoneyControl, Zomato was likely to file draft papers with market regulator SEBI on April 23. The publication further stated that on Thursday, the company’s internal review of the draft and other processes was completed.

In all streets, Zomato’s Initial Public Offering is much anticipated and it will trigger the listing of many startups of India. Zomato had converted itself from a private company to a public one by amending its Memorandum of Association and renaming itself Zomato Limited. It said that the move to convert itself into a public limited company was necessary to file IPO papers with SEBI.

According to a report published in The Hindu, SEBI has tightened rules for provisional debt rating. Credit Rating Agency (CRA) is going to check the pendency of compliance. Market regulator SEBI has come out with all new framework to strengthen policies on Provisional Rating Agency. Compliance cost refers to all the regulations that the industry pays to adhere to industry regulations. SEBI has stated that under the new framework, all provisional ratings, long term or short term, for debt instruments, need to be prefixed as ‘Provsional’, before rating symbol in all its communications. These communications include letters, press release and rating rationale.

“In no case shall a rating, including provisional rating, be assigned by a credit rating agency for an issuer or client evaluating strategic decisions such as funding mix for a project, acquisition, debt restructuring, scenario-analysis in loan refinancing,” SEBI said.