Global tech-focused investment firm Tiger Global is said to be in discussions to invest approximately $40 million in the Indian Premier League (IPL) team Rajasthan Royals, signaling its deeper involvement in India’s sports economy.
According to sources familiar with the matter, Tiger Global is considering an investment in Rajasthan Royals at a valuation of $650 million, as reported by the Economic Times. The deal is reportedly nearing completion.
The investment from Tiger Global could be a direct or indirect one, with the firm potentially backing one of the shareholders of Rajasthan Royals, stated a source quoted by the publication.
Emails sent to Tiger Global and Rajasthan Royals have not received a response at the time of publishing this article. The article will be updated upon receiving a response.
Ranjit Barthakur, the executive chairperson of Rajasthan Royals, denied any such transaction in RMPL (Royal Multisport Pvt Ltd) India, which operates Rajasthan Royals.
The UK-based Manoj Badale owns the parent entity of Rajasthan Royals, Emerging Media, holding over 60% stake in the company. Badale acquired the franchise rights in 2008.
“Tiger has been scouting for opportunities in the IPL,” said a source quoted by ET. “It has held discussions with a few other franchises…the transaction with Rajasthan Royals is yet to close, but it should close soon.”
In 2020, Tiger Global, known for its investments in Indian e-commerce giant Flipkart, as well as companies like Zomato, Policybazaar, and Ola, invested in the parent entity of esports company Dream11, called Dream Sports.
However, several of Tiger Global’s portfolio companies in India have recently faced financial or corporate governance challenges. Legal issues at BharatPe and challenges at portfolio startups such as PharmEasy, GoMechanic, and ShareChat have been reported.
Scott Schleifer, a partner at Tiger Global, recently commented that returns on capital in India have historically been unsatisfactory.
According to a recent report by D&P Advisory, the combined valuation of IPL teams rose to $10.9 billion in 2022 from $6 billion in 2020. Tiger Global’s entry into the IPL comes at a time when the market value of the league is skyrocketing.
