Tracking Tiger Global (Week 51) | 20.12-26.12.21
5 announced deals ranging from $5m Series A to $375m Series F
Dear subscribers,
Welcome to the latest edition of Tracking Tiger Global, a newsletter that provides weekly updates on Tiger Global’s latest investments. This Substack started as a “joke” but has turned into an interesting learning opportunity for me as I get to learn about awesome tech companies across sectors and geographies while tracking Tiger Global. Please note that the newsletter is not affiliated with Tiger Global and any of its portfolio companies and other entities mentioned below.
5 new deals with Tiger’s involvement were reported last week.
Razorpay (India | $375m Series F | Fintech | Tiger participated)
OfBusiness (India | $325m Series G | Marketplaces | Tiger co-led)
HyperScience (US | $100m Series E | SaaS | Tiger co-led)
Captain Fresh (India | $40m Series B | Marketplace | Tiger co-led)
GreenSpark Software (US | $5m Series A | Software | Tiger co-led)
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Razorpay (India | $375m Series F | Fintech | Tiger participated)
Founded in 2013 and headquartered in India, Razorpay is a payment gateway platform for online payments in India. They raised $375m in Series F funding at a valuation of $7.5bn, co-led by Lone Pine Capital, Alkeon Capital and TCV. Existing investors including Tiger Global participated in the round.
Razorpay “allows businesses to accept, process and disburse payments with its product suite. It gives businesses access to all payment modes including credit card, debit card, netbanking, UPI and popular wallets including JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money and PayZapp.” The Razorpay platform itself has a customer base of c. 8 million businesses in India. Furthermore, “with RazorpayX (neo-banking platform), businesses can get access to fully-functional current accounts and automate payroll compliance.” RazorX currently has 25,000 customers.
Razorpay is aiming to expand its product suite and has launched multiple new products such as MAGIC Checkout (1-Click checkout), RazorpayX Tax Payment Suite, and Razorpay RIZE (similar to Stripe Atlas).
In Jul-21, the company announced that its plans to achieve ~$50bn in Total Payment Volume by the end of 2021.
The proceeds from this round will be used to scale RazorpayX , further product development and geographic expansion in other South-east Asian countries. Furthermore, the company will “look at acquisitions in the B2B SaaS space.”
Sources: Company press release
OfBusiness (India | $325m Series G | Marketplaces | Tiger co-led)
Founded in 2015 and headquartered in India, Ofbusiness is a B2B commerce platform for SMEs in India. They raised $325 million in its Series G round at a valuation of $5bn, co-led by Alpha Wave Global, Tiger Global and SoftBank. According to Entrackr, they “have recorded an over 6x jump in its valuation in the past eight months. The firm was valued at $800 million in April, $1.5 billion in July and $3 billion in September when it raised $200 million led by Tiger Global.”
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 (as of Sep-21), 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.”
“The company will use the funds from the latest round to penetrate deeper into supply chains on the commerce side, while also building out technology for its SaaS solutions and financing engine, said OfBusiness in a press statement.” “OfBusiness further added that some early investors of the firm such as Zodius Tech, Matrix India and Creation Investments have made a partial exit in this financing round. The round also saw a partial liquidation for about 80 ESOPs holders.”
Sources: Entrackr
HyperScience (US | $100m Series E | SaaS | Tiger co-led)
Founded in 2014 and headquartered in the US, Hyperscience is a data automation platform. They raised $100m in Series E funding, led by existing investors including Global Founders Capital, Tiger, Stripes and Bessemer.
“With Hyperscience, companies can implement a platform that fits into their tech stack and work with a variety of tools that they may already have in place, such as RPA. Hyperscience goes above RPA with a proprietary document processing tool built on ML technology. Using ML and AI, Hyperscience has developed the first tool that enables human-machine collaboration, where the machine learns and improves its accuracy the more you use it, and humans are able to interact only when needed. Customers begin with classifying documents, extracting data from documents, and then move on to improving and processing. Get it all processed and managed in one platform with low-code deployment and an easy to use interface.”
The investment comes on the heels of Hyperscience’s acquisition of Boxplot, a graph modelling tool that enables organisations to visualise and better understand their customers’ data. The new round of investment enables Hyperscience, with nearly 400 global employees—a 72% increase year-over-year—to further invest in talent and R&D, both organically and through acquisition.
Source: Press release
Captain Fresh (India | $40m Series B | Marketplace | Tiger co-led)
Founded in 2019 and headquartered in India, Captain Fresh is a tech-enabled B2B seafood marketplace. They raised $40m in Series B funding at a rumoured valuation of $200m, co-led by Tiger Global and Prosus Ventures.
“Captain Fresh empowers small fishermen and farmers through its platform that aggregates the fragmented retail demand from across the country.” For the demand side, the company offers freshness, reliable supply and delivery options. For the supply side (farmers and fishermen), the company offers prompt payouts, transparency and fair prices.
The company currently has a distribution network in around 20 cities with more than 2,000 retail businesses. They plan to expand to 100 cities next year and also sell in overseas markets (primarily the US and Europe). The company is currently on an annualised run-rate of $50m according to press reports.
According to Prosus Ventures press release, “through this capital infusion, the company plans to build tech interventions and deeper tech integrations across the supply and demand-side network, such as a real-time trading marketplace, pricing and quality standardisation using AI, as well as the application of robotic automation to move massive volumes with precision. Captain Fresh will also utilise the funds towards expanding its team and distribution network across geographies.”
Sources: Prosus Ventures, Economictimes
GreenSpark Software (US | $5m Series A | Software | Tiger co-led)
Founded in 2021 and headquartered in the US, GreenSpark is a SaaS platform for the metal recycling industry. They raised $5m in Series A funding, led by Tiger Global.
“GreenSpark helps metal recyclers streamline their entire operation, from point of purchase all the way to ultimate sale. With easy-to-use purchasing and sales features, inventory management, and CRM tools, metal recyclers can buy metal more quickly, understand their operation’s commodity positions, and move paper-driven processes online.”
Sources: Company press release