Tiger Global, a tech-focused investor firm, may acquire a stake in the Indian Premier League (IPL) team Rajasthan Royals. The firm plans to invest $40 million, increasing the team's valuation to $650 million, according to a report by Economic Times.
Tiger Global's investment, whether direct or indirect, could back one of the shareholders in Rajasthan Royals through capital infusion, as stated in the report.
Tiger Global, renowned for its early support of Flipkart, has played a significant role in fueling the growth of unicorns and soonicorns (soon-to-be-unicorns).
The investment discussions are particularly noteworthy as they occur amidst concerns of a slowdown in the tech and startup economy, accompanied by a funding winter that has limited new financing opportunities.
Investing in Rajasthan Royals could mark Tiger Global's significant entry into India's sports economy, signifying a diversification beyond the digital commerce sector.
While Tiger Global has reportedly engaged in discussions with other IPL franchises, insiders familiar with the matter suggest that the investment deal with Rajasthan Royals is expected to materialise, according to the ET report.
Acquiring a stake in Rajasthan Royals could be a strategic step for Tiger Global to expand its presence beyond the technology sector into non-tech industries.
Additionally, Tiger Global already holds a stake in the prominent online fantasy gaming company, Dream Sports, which operates Dream 11. Tiger Global has a track record of supporting successful companies such as Flipkart, Zomato, Ola, and Delhivery, among others.
Tiger Global has also diversified its portfolio by investing in Wow! Momo, a quick-service restaurant chain, and Chaayos, a tea chain. This move solidifies the firm's presence in India, where it initially started nearly 15 years ago.
UK-based Manoj Badale owns over 60 percent of Emerging Media, the parent entity of Rajasthan Royals.
Badale acquired the franchise rights in 2008. In 2021, US-based RedBird Capital acquired shares in a secondary deal, which valued Rajasthan Royals at over $250 million.
Rajasthan Royals' hopes of qualifying for the IPL 2023 playoffs were dashed after Mumbai Indians secured a convincing eight-wicket victory against Sunrisers Hyderabad in a match. This result effectively eliminated Rajasthan Royals from the race.
PhonePe, a Decacorn fintech firm, announced on Monday that it has raised an additional USD 100 million in investment from General Atlantic. This funding round has also seen participation from Ribbit Capital, Tiger Global, and TVS Capital Funds.
