Tiger Global, a prominent technology-focused investment firm with a glowing track record in India so far is reportedly negotiating a deal to acquire a stake in the Indian Premier League’s Rajasthan Royals franchise, according to a recent report.
What’s Happening? Per an ET report, the New York-based firm intends to invest approximately $40 million (₹331.25 crore) into Rajasthan Royals, estimating the franchise’s value at $650 million (₹5,382.58 crore).
According to sources cited by ET, Tiger Global is on the brink of finalising the deal. This move signifies a significant expansion of their engagement in India’s sports economy, moving beyond their traditional domain of digital commerce, where they earned recognition as an early supporter of e-commerce behemoth, Flipkart.
Potential methods for this capital infusion could be either direct or indirect, such as supporting one of Rajasthan Royals’ shareholders, an insider disclosed.
Manoj Badale, a UK-based businessman, primarily owns Emerging Media, the parent company of Rajasthan Royals. Since acquiring rights in 2008, he controls over 60% of the franchise.
Get all the latest Share Market trends and news to set you up for the week ahead.
The undisclosed sources added that Tiger has been actively exploring opportunities within the IPL and engaging with several other franchises. Although the deal with Rajasthan Royals hasn’t officially closed, it is expected to go through soon.
Eye of the Tiger: Tiger Global, which entered India nearly 15 years ago, maintains a significant local presence. Some of its successful internet investments include Flipkart, Ola, Zomato, and Delhivery.
In the sports economy, Tiger holds a stake in online fantasy gaming major Dream Sports, running Dream 11. Additionally, it has invested in the quick-service restaurant chain Wow! Momo and tea chain Chaayos, demonstrating its diversification beyond core technology bets.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.