Tiger Global may invest in two more startups; Boodmo, Udaan raise fresh capital: Reports

US-based investment firm Tiger Global Management is in discussions to invest up to $90 million in industrial goods marketplace Moglix and up to $30 million in online stock brokerage firm Upstox, The Times of India reported, citing three people privy to the development.

The investment firm will likely strike seven to eight deals this quarter and will focus on the business-to-business segment, one of the persons mentioned above told ToI.

These investments will be led by Scott Shleifer, Tiger Global’s new head of private equity, the report added.

Tiger Global may acquire a 20% stake in Upstox at a valuation of about $100 million, the report added, citing the people mentioned above.

Upstox is a stock broking company headquartered in Mumbai.

Moglix is a B2B firm specialising in the procurement of industrial products such as MRO, fasteners and industrial electricals, hardware, pneumatics and safety items. The company has partnered with over 1,500 manufacturers and distributors across these categories in India, China and Taiwan.

In March, Moglix raised an undisclosed amount from from Kalyan Krishnamurthy, chief executive officer of homegrown e-commerce giant, Flipkart.

Tiger Global has been an early investor in India’s startup ecosystem. It backed Flipkart as early as 2009 and received $3 billion when US retailer Walmart Inc. bought a majority stake in the Indian e-commerce firm last year.

However, the firm halted its deal activity over the past three years and only again resumed investing in December last year when it backed Roposo, a social platform for sharing photos and videos.

Since then, it has invested in Zenoti, a software provider to salons and spas, agri-tech startup NinjaCart, customer lifecycle management platform CleverTap, expense management startup Fyle and software-as-a-service startup Facilio. It is also in talks to invest in SaaS startup SirionLabs.

Spare parts startup Boodmo raises fresh capital

Auto parts marketplace Boodmo has raised Rs 8 crore ($1.14 million at current exchange rates) from an undisclosed investor, a report in The Economic Times stated.

The startup will use the capital to strengthen its presence in the country, set up new sorting hubs, boost technology infrastructure and hire talent, the report stated, citing the firm’s managing director and co-founder Oleksandr Danylenko.

With offices in Delhi and Jaipur, Boodmo plans to launch a new sorting hub in Bengaluru in the next two weeks and may set a hub in Maharashtra in the last quarter of 2019, the report said.

In 2017, Boodmo received Rs 10 crore in its first investment round, with an additional Rs 5 crore in the same year. The company also raised Rs 5 crore in July 2018 and an additional Rs 7 crore in December 2018.

With the current tranche, Boodmo has secured total capital worth Rs 35 crore, said the report.

A LinkedIn message sent to Danylenko, seeking confirmation on the deal did not elicit any response till the time of publishing this report.

Founded by Ukranian entrepreneurs Yevgen Sokolnikov and Danylenko in 2015, Boodmo helps buyers and sellers identify car parts through a comprehensive database catalogue.

B2B marketplace Udaan secures fresh funding

Bengaluru-based Hiveloop Technology Pvt. Ltd, which operates business-to-business e-commerce platform Udaan, has raised approximately Rs 140 crore (around $20 million at current exchange rates) from its Singapore-based parent Trustroot Internet, a report in The Economic Times stated.

Trustroot has been allotted 205,616 Series D compulsorily convertible participative preference shares (CCPPS) on May 6, having paid a premium of Rs 6,774.49 per share, the ET report stated, citing documents filed with the Registrar of Companies as sourced by data research firm paper.vc.

Udaan was founded in 2016 by former Flipkart employees Amod Malviya, Sujeet Kumar and Vaibhav Gupta. The firm caters to small and medium businesses. It connects traders, wholesalers, retailers and manufacturers on a single platform via a mobile app.

Udaan helps businesses discover customers, suppliers and products across categories and connect directly with each other for the best deal. The platform also facilitates buying and selling with secure payments and logistics. It also offers escrow protection for seamless payments and round-the-clock seller and buyer support.

The company, which follows an asset-light model, currently operates across fashion, electronics and staples and fast-moving consumer goods.

Last year in September, it raised $225 million (Rs 1,593 crore at current exchange rates) in its Series C round of funding from its existing investors DST Global, owned by Russian billionaire Yuri Milner, and Lightspeed Venture Partners.

It secured $50 million (Rs 324 crore) in its Series B funding round in February last year.