Tiger Global’s IPL Play: Investment Firm To Acquire Stake In Rajasthan Royals

Global tech-focussed investment major Tiger Global is reportedly in talks to invest around $40 Mn in the Indian Premier League (IPL) team Rajasthan Royals, deepening its foray into India’s sporting economy.

Tiger Global is looking to invest in Rajasthan Royals at a valuation of $650 Mn, people aware of the development told the Economic Times. As per the report, the deal is nearly complete.

“The capital infusion could be a direct or an indirect one, wherein Tiger may back one of the shareholders in Rajasthan Royal,” a source was quoted as saying by the publication.

Emails sent to Tiger Global and Rajasthan Royals did not elicit a response till the time of publishing the article. The article will be updated on receiving a response.

As per the publication, Ranjit Barthakur, executive chairperson of Rajasthan Royals, denied any such transaction in RMPL (Royal Multisport Pvt Ltd) India. Rajasthan Royals is operated by RMPL.

UK-based Manoj Badale owns Rajasthan Royals’ parent entity Emerging Media with over 60% stake in the company. He acquired the franchise rights in 2008.

“Tiger has been scouting for opportunities in the IPL,” a source was quoted as saying 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, which backs India’s ecommerce major Flipkart and the likes of Zomato, Policybazaar, Ola, made an investment in esports company Dream11’s parent entity Dream Sports.

However, in recent days, several of its India portfolio companies have been in financial or corporate governance troubles. Legal problems at BharatPe have now been well documented and are still ongoing. Its portfolio startups including PharmEasy,  GoMechanic, and ShareChat have also seen tough times in recent days.

Scott Schleifer, partner at Tiger Global, recently said that returns on capital in India have “sucked” historically.

As per a recent Wall Street Journal report, Tiger Global marked down the value of its overall investments in private companies by about 33% across its funds in 2022.

Meanwhile, Tiger Global’s entry in the IPL comes at a time when its market value is skyrocketing. As per a report by D&P Advisory, the combined valuation of IPL teams rose to $10.9 Bn in 2022 from $6 Bn in 2020.

Earlier in 2021, US-based investment firm RedBird Capital acquired a stake in Rajasthan Royals in a secondary deal, valuing the franchise at over $250 Mn.