Tiger Global Management’s venture capital business is considering of joining in the new round of fund raising by Flipkart, an e-commerce company in India.Chase Coleman III is the head of Tiger Global.
Former Amazon.com executives Sachin Bansal and Binny Bansal co-founded Flipkart in 2007. The company is now the largest e-commerce platform in India, and it aims to capture a larger market share in the industry. The e-commerce market is expected to expand by 70% to $6 billion this year.
Flipkart’s valuation could reach $15 billion
Flipkart intends to raise $600 million to $800 million in capital in a new round of fundraising. It will be led by its existing investors including Tiger Global and Qatar Investment Authority, according to media reports.
Its other investors include Accel Partners, DST Global, Steadview Capital, and GIG. Flipkart raised almost $2 billion from its previous round of fund raising. . Last December, the company raised $700 million, and its valuation is already around $11.5 billion.
Flipkart’s valuation could reach as much as $14 billion to $15 billion after its new round of fundraising. The company is expected to launch an initial public offering (IPO) within the next 18 months.
Tiger Global has $700 million to invest in internet startups
ValueWalk previously reported that Tiger Global has $700 million to invest in internet startups through the Tiger Global Internet Opportunities Fund. Coleman created the internet fund in January.
Since the tech boom in 2001, Tiger Global has been investing in venture capital risks. The firm’s internet fund is managed by Scott Shleifer.
Tiger Global 2014 performance
Meanwhile, Tiger Global generated 21.4% gross return in 2014. Since its inception in 2001, the hedge fund recorded a compound annual growth rate (CAGR) of 27.4%.
According to the hedge fund, its most profitable investments last year include Vipshop, a leading online discount apparel in India and Naspers, a media company in South Africa that own a unique portfolio of internet assets.
Tiger Global’s investments in FleetCor Technologies, a leading provider of fuel carts to commercial fleet operators and Alibaba Group Holdings also contributed to its positive performance last year.
In its letter to investors, Tiger Global said its internet fund ‘focuses on long investments on the Internet and all of its subcategories.” The size of Tiger Global Investment Opportunities Fund is approximately $2.3 billion.