After three years, Tiger Global makes a roaring comeback to India

Tiger Global has invested USD 300 million into Indian startups in 2019 alone.

Photo by Rupixen on Unsplash

New York-based hedge fund Tiger Global that recently increased its stake in Walmart-owned Flipkart, is close to finishing a USD 100 million to 130 million funding round in Indian real-estate startup NoBroker, according to local media The Economic Times.

Private equity investor General Atlantic is also co-leading the round that would double the property tech startup’s valuation to USD 400 million since its last funding of USD 51 million three months ago, also led by General Atlantic.

The Bengaluru-based online real-estate company enables its users to buy and rent properties at no costs. It earns revenue from its value-added services like managing rent payments, providing packing & moving services during relocation, along with offering furniture and home appliances for rent.

“NoBroker’s focus on being a transaction-led, asset-light business is luring investors,” an investor told ET, requesting anonymity.

As per regulatory filings, NoBroker’s revenues in financial year 2018 was USD 1.2 million against a loss of USD 4.4 million.

After almost three years of lull, Tiger Global is firing all guns in its quest to find promising Indian startups, and has already poured in nearly USD 300 million this year across 13 companies. Traditionally known for its investments in consumer internet companies, the profile of its current portfolio companies suggest the investment giant is gradually shifting focus from B2C to B2B, SaaS (Software as a Service) and fintech companies.

“While the strategy today seems aggressive, it remains to be seen how many of these businesses receive follow-on capital from Tiger,” a partner at a top venture fund told ET.

The investment giant has indeed infused capital into existing portfolio firms that includes home rental network NestAway, grocery e-tailer Grofers and payments startup Razorpay.

In August 2018, Tiger Global made its maiden and record exit in India worth USD 2.5 billion when it sold its stake in online retailer Flipkart during its acquisition by Walmart for USD 16 billion.

Scott Shleifer, Tiger Global’s primary man in India has backed almost 20 companies, a mix of old and new clients. Shleifer has decided to play smart with the hedge fund’s fortune, and has invested in a mix of companies such as agri-tech provider Ninjacart, marketing analytics firm CleverTap, Hyderabad-based SaaS company Freshworks, robotics startup GreyOrange, among many others.