Tiger Global has part-exited its eight-year-old investment in Mumbai-based Just Dial Ltd, which runs the online business directory Justdial.com, by selling just over a quarter of its stake in the company on Monday for Rs 300.5 crore ($48 million).
It sold 3.4 per cent of its 13.22 per cent stake through a stock market transaction. It is estimated to have clocked around 20x returns on its investment.
The global investment firm, which also runs a hedge fund business but is more closely associated with venture investment in Indian tech businesses, continues to own a small stake which is currently worth Rs 911 crore.
Tiger Global had also sold a small stake during the company’s IPO two years ago.
The investment firm follows two other VC investors in Just Dial—SAIF Partners and Sequoia Capital—which also sold a small chunk last year. These two firms, however, sold shares when the share price was much higher.
Multi-stage private investment firm SAIF Partners part-exited pocketed around Rs 254 crore ($41 million) and generated around 30x in gross returns.
This was one of the biggest VC exits in terms of return multiples from an Indian portfolio firm and at-par with Sequoia’s more recent part-exit from Just Dial (click here for more on that).
SAIF Partners was the first large institutional investor to back Just Dial. It first invested Rs 55 crore in Just Dial. Later it invested more along with Tiger Global and Sequoia Capital and also picked some shares of an existing shareholder.
Founded by VSS Mani in 1994, Just Dial is a local search firm that provides both B2C and B2B listings of small and medium businesses across the country, and provides services across multiple platforms, including the Internet, phone, wireless and print.
Lately it has been expanding its business by adding transaction services for its merchants allowing consumers to buy products and services from third-party vendors like a marketplace.
Just Dial recently said it is planning to raise up to Rs 1,000 crore ($165 million) through equity and related instruments.
Shares of Just Dial last traded at Rs 1,319.7 each, up 0.84 per cent on the BSE in a strong Mumbai market on Monday.
(Edited by Joby Puthuparampil Johnson)