- $65 billion hedge fund Tiger Global is edging out venture capital firms to invest in startups.
- The company has taken part in 110 startup financings so far in 2021, according to PitchBook.
- We listed the startups it backed in 2021 that plan to go public within the year.
- See more stories on Insider’s business page.
$65 billion hedge fund Tiger Global has been on a startup investing spree this year, averaging more than one venture-style investment per business day in 2021, Insider reported.
As companies choose to stay private for longer periods of time and the number of public companies in the market has declined, hedge funds like Tiger Global and D1 Capital Partners are turning to startups as a source of differentiated returns. Tiger Global has won deals away from some of the most prominent venture capital firms, participating in 110 startup financings this year already compared to its next-fastest competitors in startup funding Andreessen Horowitz (101 investments) and Accel (87 investments), according to Pitchbook’s estimates.
In early May, the tech-hedge fund was looking to raise a $10 billion fund from investors to keep scooping up deals, The Financial Times reported.
Tiger Global has also been active in private investment in public equity (PIPE) financing rounds to support special purpose acquisition company (
) mergers including deals with satellite data specialist Spire and mobile monetization firm Ironsource.
According to recent reports in The Information and the Financial Times, Tiger Global is known in the venture world for approaching startups before they begin fundraising and offering to pay high premiums. The hedge fund could now be set to realize gains from its strategy this year as some of its key portfolio companies look to go public.
We outlined the companies Tiger Global has funded in 2021 that have either filed or discussed plans to go public this year below.
Stock Market Filed:
Blend Labs, a mortgage-tech company, filed its draft S-1 registration statement with the Securities and Exchange Commission mid-April, signaling its plans for an initial public offering. The digital lending platform closed $300 million in Series G funding led by Tiger Global and Coatue on January 13. The round, which valued the company at $3.3 billion, nearly doubled its valuation from its last funding round five months prior. Blend had a record year in 2020, expanding its coverage to approximately 30% of all U.S. mortgage volume, according to a press release. It also announced the acquisition of title insurance provider Title365 from Mr. Cooper Group in March.
Five-year-old Uruguayan payments startup dLocal confidentially filed for a US IPO in May, sources familiar with the matter told Bloomberg. The fintech unicorn is working with banks including JPMorgan on its listing, which could happen later this year and is slated to value it at over $5 billion, which is the valuation it secured in its latest funding round in April. Alkeon Capital led that round with participation from Tiger Global, D1 Capital Partners, and others, providing $150 million in funding for dLocal. It raised its first institutional venture round in September 2020 led by General Atlantic, after which it shared its pitch deck with Insider.
Software-provider Squarespace is going public via a direct listing on the New York Stock Exchange on May 19 with the ticker SQSP. Unlike in an IPO, its debut price will be determined by post-listing orders rather than shares sold in advance. Tiger Global participated as a new investor in Squarespace’s latest funding round in March, when the website-building platform raised $300 million at a valuation of $10 billion.
One of Tiger Global’s many bets in India is slated to go public this year on the Indian stock exchanges NSE and BSE. Indian food delivery group Zomato filed for a $1.1 billion initial public offering, which would make Zomato’s IPO the biggest in India so far this year, per Bloomberg. The company, which counts China’s Ant Financial as a large shareholder, was last valued at $5.4 billion after a $250 million funding round co-led by Tiger Global and Kora in February. Tiger Global also led its previous $160 million funding round in September 2020 alongside Temasek Holdings. Kotak Investment Banking, Morgan Stanley, Credit Suisse Group AG, BofA Securities, and Citigroup Inc. will serve as arrangers on the IPO.
Stock Market Expected:
Chinese fresh-food grocery app Dingdong Maicai raised $30 million in a so-called “D-plus” funding round led by SoftBank on May 11, said its advisor, Cygnus Equity. The latest round comes on the heels of a $700 million Series D financing led by DST Global and Coatue, with participation from existing investors including Tiger Global and Sequoia Capital. The company is contemplating going public in the US as soon as this year, sources familiar with the matter told Bloomberg in February. Talks are in early stages for the deal, which the sources said could raise at least $300 million for the company.
Dreamsports, the parent company of Indian fantasy sports platform Dream11, is reportedly in early talks with investment banks for a US public listing by early 2022, per the Economic Times in April. The 13-year-old startup is considering merging with a SPAC for its public market debut. It raised $400 million at a $5 billion valuation in March 2021 led by TCV, D1 Capital Partners, and Falcon Edge, with participation from existing investors including Tiger Global and TPG Growth. Dream11’s valuation after the round brought it to the league of India’s most valued unicorns like OYO ($9 billion) and Zomato ($5 billion).
Hyperlocal Indian grocery-delivery startup Grofers raised $220 million in mid-May last year in a round led by SoftBank’s Vision Fund with participation from existing investors Tiger Global and Sequoia Capital. The platform, founded in 2013, is now working with an adviser to go public via a SPAC merger, seeking a $1 billion-plus valuation, sources familiar with the matter told Bloomberg. The Economic Times reported in February that Grofers is in talks with Cantor Fitzgerald’s SPAC to raise between $400 million and $500 million through a Nasdaq listing in May, which would make it the first Indian startup to merge with a blank-check company.
Indian customer engagement messaging platform Gupshup raised $100 million from Tiger Global on April 8 at a $1.4 billion valuation for the company. The round will be followed by a second close “with significant additional funds raised from more investors,” per the press release. The funding news comes after Gupshup CEO Beerud Sheth told MergerMarket in November 2020 that it might initiate an IPO process over the next 12 months or pursue a deal with a private equity buyer.
, a platform facilitating payments from fans to support content creators, is considering going public as soon as this year, a source familiar with the matter told The Information. The startup has met with both banks and SPACs, though according to the source, a SPAC merger is not its preferred route to the public markets. The company’s valuation tripled to $4 billion after its last funding round in April, in which it raised $155 million led by new investor Tiger Global with participation from existing investors including Wellington Management and Lone Pine Capital.