A few months in the past, it regarded like all of the items had fallen into place for a scorching secondaries summer time: Patrons had been coming again to market, some firms and sellers had been getting determined, and the bid-ask unfold — the distinction of what consumers are prepared to pay and the worth sellers are setting — was tightening.
Tiger World’s current secondary deal, during which it bought its stake in Indian e-commerce big Flipkart to Walmart for $1.4 billion, reveals that the market has began transferring. However this transaction shouldn’t be taken as a bellwether of what’s forward for enterprise’s secondary market this yr.
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 introduced 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, in response to TechCrunch reporting. It bought off a bunch of its shares over time to internet a collective $3.5 billion return, which isn’t a foul payout by any requirements.
Tiger World declined to remark. A Walmart spokesperson stated, “We worth Tiger World’s involvement and help during the last a number of years. We stay assured in the way forward for Flipkart and are much more constructive concerning the alternative in India right now than once we first invested.”
Positive, one may argue — rightly so — that this deal is somewhat exterior the enterprise market, contemplating Flipkart has been majorly owned by Walmart since 2018. However, Tiger World has been buying round plenty of its enterprise stakes, too — which may embrace firms like Brex, Chime and Databricks — and I feel it’s good to mull over why the funding agency seemingly gained’t get the same deal for its enterprise stakes.