New Delhi: Tiger Global, a venture capital (VC) firm, has reportedly sold 1.17 crore shares, or a 1.6% stake, in logistics firm Delhivery in a recent bulk deal. The shares were sold at Rs 330 each on the open market, resulting in a gain of Rs 337.8 crore. It is unclear who bought the shares.
This is not the first time that Tiger Global has sold its stake in Delhivery. Two months ago, the same fund sold 1.2 crore Delhivery shares for Rs 414.2 crore, and in March, it sold a 0.75% stake worth Rs 177 crore. At the end of December 2022, Tiger Global held a 4.68% stake in the company, which was reduced to 1.7% in February, then 0.75%, and it now likely has just 0.63%.
The reason for Tiger Global’s decision to sell its stake in Delhivery is not clear, but it follows a pattern of investors offloading shares in Indian tech companies over concerns about profitability and losses. Many pre-IPO investors in Zomato, Paytm, and PolicyBazaar abandoned those firms as their share prices fell amid global macroeconomic pressures and investor caution. Delhivery listed last year during turbulent market conditions and has seen several of its pre-IPO investors depart.
Tiger Global has been reducing its stake in several Indian start-ups, including PB Fintech, which it exited after the expiration of the insure-tech start-up’s lock-in period. However, the VC firm has faced regulatory obstacles and surging losses among its portfolio companies. BharatPe, which has had public disagreements between its board of directors and co-founders, and GoMechanic, which was recently accused of financial fraud, have also caused difficulties for Tiger Global in India.
In conclusion, Tiger Global’s recent sale of its stake in Delhivery has garnered a gain of Rs 337.8 crore, but the reason for this move is unclear. The firm has been reducing its stake in several Indian start-ups, including Delhivery, PB Fintech, BharatPe, and GoMechanic, amid concerns over profitability and losses, as well as regulatory obstacles and other challenges faced by its portfolio companies.
