Most secondary sales won’t look like Tiger’s Flipkart deal | TechCrunch

A few months in the past, it seemed like all of the items had fallen into place for a scorching secondaries summer time: Patrons have been coming again to market, some corporations and sellers have been getting determined, and the bid-ask unfold — the distinction of what patrons are keen to pay and the value sellers are setting — was tightening.

Tiger World’s latest secondary deal, during which it sold its stake in Indian e-commerce giant Flipkart to Walmart for $1.4 billion, exhibits that the market has began shifting. However this transaction shouldn’t be taken as a bellwether of what’s forward for enterprise’s secondary market this 12 months.

To recap, Walmart is already a majority shareholder in Flipkart, and this new deal valued the web market at $35 billion, a minor 7% valuation haircut from its final publicly announced valuation of $37.6 billion.

Tiger World had invested a complete of $1.2 billion in Flipkart over a number of funding rounds since 2010, based on TechCrunch reporting. It bought off a bunch of its shares over time to internet a collective $3.5 billion return, which isn’t a nasty payout by any requirements.

Tiger World declined to remark. A Walmart spokesperson stated, “We worth Tiger World’s involvement and assist over the past a number of years. We stay assured in the way forward for Flipkart and are much more optimistic concerning the alternative in India at this time than after we first invested.”

Positive, one might argue — rightly so — that this deal is slightly exterior the enterprise market, contemplating Flipkart has been majorly owned by Walmart since 2018. However, Tiger World has been shopping around numerous its enterprise stakes, too — which might embrace corporations like Brex, Chime and Databricks — and I feel it’s good to mull over why the funding agency probably gained’t get an analogous deal for its enterprise stakes.