It looks like that Tiger Global is taking partial exits from Flipkart and Ola by divesting its shares in the company to Japanese conglomerate SoftBank, as per The Economic Times. The publication reports that the New York-based investor is expected to sell shares to the tune of $600-700 million in Flipkart through a buyback, and reduce its stake in Ola to about 7% stakes from 15%.
After the transaction, Japanese conglomerate SoftBank is expected to own about one-third of Ola and 20% in Flipkart, according to ET. The financial daily also pegs Tiger’s remaining shares in these companies at the value of $1.5-2 billion combined. The report, which quotes sources, says that the deals are happening at a discount as compared to the existing valuations of both the companies, and added that Flipkart deal is happening on 30% discount and, Ola’s at 10% discount.
Note that, Lee Fixel, partner at Tiger Global , who was on the board of cab aggregator Ola (ANI Technologies) has stepped down from his position. Based in New York, Fixel looks at Tiger Global’s assets in India. Tiger Global is one of the oldest investors in Ola and Flipkart. While the cab aggregator first raised its Series A funding from Tiger Global in 2012, the e-commerce player bagged first few investments in 2010. Note that Softbank’s latest investment of $2.5 billion already hinted Tiger’s partial exit from the company.
Tiger Global’s slowdown in India
After being one of the top investor for the startups in India two year ago, Tiger Global is now slowing its pace in the country. According to a Livemint report, it had invested in 35 Indian startups in 2015, however, it slashed the number in 2016 and 2017. In last two years, it invested in a handful of companies in India, like Delhivery, ShopClues, The Viral Fever, Nestaway, and PolicyBazaar.