Menu Close

Deal Dive: Most secondary sales in venture won’t look like Tiger’s Flipkart deal

A few months ago, it looked like all the pieces had fallen into place for a hot secondaries summer: Buyers were coming back to market, some companies and sellers were getting desperate, and the bid-ask spread — the difference of what buyers are willing to pay and the price sellers are setting — was tightening.

Tiger Global’s recent secondary deal, in which it sold its stake in Indian e-commerce giant Flipkart to Walmart for $1.4 billion, shows that the market has started moving. But this transaction shouldn’t be taken as a bellwether of what’s ahead for venture’s secondary market this year.

To recap, Walmart is already a majority shareholder in Flipkart, and this new deal valued the online marketplace at $35 billion, a minor 7% valuation haircut from its last publicly announced valuation of $37.6 billion.

Tiger Global had invested a total of $1.2 billion in Flipkart over multiple funding rounds since 2010, according to TechCrunch reporting. It sold off a bunch of its shares over time to net a collective $3.5 billion return, which is not a bad payout by any standards.

Tiger Global declined to comment. A Walmart spokesperson said, “We value Tiger Global’s involvement and support over the last several years. We remain confident in the future of Flipkart and are even more positive about the opportunity in India today than when we first invested.”

Sure, one could argue — rightly so — that this deal is a little outside the venture market, considering Flipkart has been majorly owned by Walmart since 2018. But, Tiger Global has been shopping around a lot of its venture stakes, too — which could include companies like Brex, Chime and Databricks — and I think it’s good to mull over why the investment firm likely won’t get a similar deal for its venture stakes.

Tiger Global sold its Flipkart stake at a valuation 7% below the startup’s last primary round. This outcome isn’t likely to happen again.  Read More TechCrunch 


Innov8 is owned and operated by Rolling Rock Ventures. The information on this website is for general information purposes only. Any information obtained from this website should be reviewed with appropriate parties if there is any concern about the details reported herein. Innov8 is not responsible for its contents, accuracies, and any inaccuracies. Nothing on this site should be construed as professional advice for any individual or situation. This website includes information and content from external sites that is attributed accordingly and is not the intellectual property of Innov8. All feeds ("RSS Feed") and/or their contents contain material which is derived in whole or in part from material supplied by third parties and is protected by national and international copyright and trademark laws. The Site processes all information automatically using automated software without any human intervention or screening. Therefore, the Site is not responsible for any (part) of this content. The copyright of the feeds', including pictures and graphics, and its content belongs to its author or publisher.  Views and statements expressed in the content do not necessarily reflect those of Innov8 or its staff. Care and due diligence has been taken to maintain the accuracy of the information provided on this website. However, neither Innov8 nor the owners, attorneys, management, editorial team or any writers or employees are responsible for its content, errors or any consequences arising from use of the information provided on this website. The Site may modify, suspend, or discontinue any aspect of the RSS Feed at any time, including, without limitation, the availability of any Site content.  The User agrees that all RSS Feeds and news articles are for personal use only and that the User may not resell, lease, license, assign, redistribute or otherwise transfer any portion of the RSS Feed without attribution to the Site and to its originating author. The Site does not represent or warrant that every action taken with regard to your account and related activities in connection with the RSS Feed, including, without limitation, the Site Content, will be lawful in any particular jurisdiction. It is incumbent upon the user to know the laws that pertain to you in your jurisdiction and act lawfully at all times when using the RSS Feed, including, without limitation, the Site Content.