Tracking Tiger Global (Week 39) | 27.09-03.10.21
4 Tiger deals this week: Ofbusiness, Datacloak, Higo, Lifebit
Dear subscribers,
Welcome to the sixth edition of Tracking Tiger Global, a newsletter that provides weekly updates on Tiger Global’s latest investments.
4 new deals with Tiger’s involvement were announced this week. The updated dataset can be accessed here.
OFBUSINESS (India | $207m Series F | Marketplaces | Tiger led)
DATACLOAK (China | $50m Series B | SaaS | Tiger led)
HIGO (Mexico | $23m Series A | Fintech | Tiger participated)
LIFEBIT (UK | $60m Series B | Healthtech | Tiger led)
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OFBUSINESS (India | $207m Series F | Marketplaces | Tiger led)
Founded in 2015 and headquartered in India, Ofbusiness is a B2B commerce platform for SMEs in India. It has raised $200 million in its Series F round, led by Tiger Global, at a $3bn post-money valuation. According to Entrackr, Tiger Global invested $150m for a c.5% stake. It should be noted that the company had just announced a $160m Series E round at $1.5bn valuation in Jul-21!
Ofbusiness has two (interconnected) business lines:
(a) Help companies source raw material: Its technology platform negotiates with more than 100 manufacturers and suppliers across India to get the best guarantee prices on bulk raw materials i.e, structural steel, flats, TMT, polymer, paper & cement. Its strong pan India presence and aggregate demand functionality helps Ofbusiness to fetch volume discounts which in effect helps SME’s save 3%."
(b) Access to cash flow-based financing for procurement: Through its NBFC Oxyzo Financial Services division, “OfBusiness offers customized credit lines as per business requirement at 1.5% per month effectively, helping SME’s save up to 3% over a 90 day credit period. According to the company, Oxyzo has a loan book of $240 million (growing 80% YoY), with a pre-tax RoA of over 6% and NPAs of 1.2%. It has 5,000 borrowers on its Oxyzo platform.
A good overview of how the business works can be found here.
“The company claims that it is growing at 4x year-on-year (YoY) and crossed the $1.2 billion (Rs 8,700 crore) revenue run rate mark in commerce division as of Sep-21. OfBusiness has recorded Rs 84 crore profit and FY21 and is expecting to post a profit of Rs 350 crore in the ongoing financial year or FY22.” According to LinkedIn, the company has 500 employees with 14 job openings.
“Asish Mohapatra, co-founder and chief executive said that “OfBusiness will use the new funds to strengthen its leadership position in the raw material supply chain [commerce] and financing business,” in an exclusive interaction with Entrackr.”
Sources:
DATACLOAK (China | $50m Series B | SaaS | Tiger led)
Founded in 2018 and headquartered in China, DataCloak is a Zero Trust security startup. It has raised a $50m Series B+ funding, led by Tiger Global.
According to CSOonline, “Zero Trust is a security concept centered on the belief that organizations should not automatically trust anything inside or outside its perimeters and instead must verify anything and everything trying to connect to its systems before granting access.”
Datacloak provides enterprises with software-defined next-generation security infrastructure solutions based on the zero trust concept. The company has two main products:
DataCloak Zero Trust Terminal Secure Workspace (DACS): “Based on the Zero-Trust framework, DataCloak builds virtual, private, flexible, and intelligent secure workspaces for enterprises, covering office working, cloud computing and edge computing scenarios, allowing data to safely flow among them. It is a one-step solution for upgrading into the zero trust architecture standard, making it a valid substitute for any traditional product or technology, e.g., VDI, DLP, IDV or VPN.”
DataCloak Zero Trust Application Access Gateway (DAAG): “DAAG is a fine-grained access control gateway based on the zero trust architecture, which helps enterprises easily centralize multi-system identity authentication and authority management. It is a one-step solution to securing the access to internal business systems via the Internet and to realizing a quick local upgrading to the zero trust standard architecture at low cost.”
Sources
HIGO (Mexico | $23m Series A | Fintech | Tiger participated)
Founded in 2020 and headquartered in Mexico, Higo.io is a B2B payments platform for SMEs in Mexico. It has raised $23m in a Series A round, led by Accel. Tiger Global along with existing investors and several angels also participated.
The process for paying vendors for SMEs is very cumbersome in Latin America. Higo has developed a set of tools to automate processes and provides visibility into cash flow. With its mission to maximize liquidity for SMEs, Higo aspires to become Venmo for B2B payments in Latin America.
The product suite includes:
a) Pay: automate the receipt of invoices, centralize the approval process and pay suppliers in seconds
b) Financing: finance accounts payable and accounts receivable
c) Cobra (coming soon): receive payments of invoices on time, reduce uncollectible and automate account receivable process
According to Techcrunch, “the company says it has grown “over 20x,” to thousands of companies paying and getting paid with its platform compared to just a handful at the beginning of 2021. Higo began 2021 with five employees and now has 31, with the goal of having a staff of 60 by year’s end. It plans to use its new capital primarily for hiring across all teams.”
Sources:
LIFEBIT (UK | $60m Series B | Healthtech | Tiger led)
Founded in 2017 and headquartered in the UK, “Lifebit builds enterprise data platforms for use by organisations with complex and sensitive biomedical data environments. It has raised $60m in a Series B funding round, led by Tiger Global with participation from existing investors including Eurazeo, Pentech and Beacon Capital.
“Despite the rapid growth of biomedical data, only a fraction is utilized for drug discovery and precision medicine. Lifebit's pioneering federated approach makes this data findable, usable and actionable, providing an end-to-end solution that is swiftly disrupting life sciences.”
“Instead of moving data around, Lifebit builds enterprise data platforms for use, in-house, by organisations with complex and sensitive biomedical datasets. Through Lifebit’s suite of AI-powered, end-to-end software solutions, these platforms are also able to provide faster data insights, accelerate drug discovery pipelines, and improve clinical trials success.”
“The Series B funding round, led by Tiger Global, will be used to further Lifebit’s global expansion, with a focus on customer success and accelerating the growth of its team, and will crucially enable Lifebit to double down on client success – fueling further support for existing partners, as well as those to come.”
Sources: