Latin America has seen a rise in tech-based startups over the past few years with even more venture capital firms investing in them. Tiger Global is one such venture capital firm that has made its presence felt in the Latin American startup scene. Chase Coleman III founded it and it is known for investing huge amounts of money into promising newcomers within multiple industries.
Tiger Global has become increasingly active within Latin America, especially Brazil and Mexico. It has invested in some of the most successful startups, like Rappi, Tembici and Loggi. The firm is not just focused on tech-driven companies but also other industries including energy, health, retail and education as well. Tiger Global aims to drive innovation, growth and sustainability through its investments.
This article will discuss some of the most successful startups that have received funding from Tiger Global within Latin American countries. We will look at the investment amounts each received and their practical approach towards expanding their reach into potential new markets. We will also explore the history behind Tiger Global’s investments in these startups and its plans for them moving forward into 2021.
Overview of Tiger Global
Tiger Global is a New York-based investment firm with a portfolio of investments spanning multiple asset classes. They have provided funding to several startups across Latin America, particularly in shipping solution startups such as clicOH, which recently closed a $25 million Series A round.
This article will provide an overview of Tiger Global’s investments in Latin America.
Investment Focus
Tiger Global Management is an investment firm that focuses on long-term investments in public and private companies. Tiger Global has invested in numerous public and private companies, including some of the most successful startups in Latin America, such as Airbnb, Didi Chuxing, and Rappi.
Tiger Global’s investment strategy is to identify high potential early stage companies and back them without taking too much control of the company. Tiger Global prefers working with founders who have a big impact vision for their projects, own a significant stake in the business, have an ambitious growth plan for their market and/or industry, strong financial management skills, a proven track record with their past projects, and a well-developed exit strategy for investors.
Most of Tiger Global’s investment focuses on technology-enabled businesses such as ecommerce operators, SaaS providers, fintechs and digital media companies. While the fund does not restrict its activity to any particular region or sector constellation it has significant exposure to Latin America based startups across various industries such as food delivery services; Real estate; Retail/CPG; Healthcare; Automotive marketplace/rental services & logistics; Mobility services (B2B & B2C); Educational technology platforms & software; Financial technology & policy risk management platforms; Energy efficiency solutions & renewable energy projects among others.
Investment Track Record
Tiger Global is a leading investor in the global technology industry, with a consistent focus on long-term investments. The company has invested in more than 300 companies across over 20 countries, and most notably companies in the ecommerce and mobile technology spaces.
In Latin America, Tiger Global has invested in some of the region’s leading startups. Over the past five years, it has backed numerous companies that have driven innovation across diverse sectors such as payments, transportation, human resources, health care and more. In addition, tiger Global’s investments have enabled Latin American entrepreneurs to launch tech businesses that have grown to become key players at home and around the world.
Tiger Global’s track record of success has been recognized across multiple continents – the firm was named one of CNBC’s top venture capital firms globally for 2017. From its headquarters in New York City, Tiger Global focuses on early-stage deals and makes growth investments when opportunities align with its long-term strategies. Its investments span multiple rounds and often include structured products such as debt financing and warrants.
Latin American Shipping Solutions Startup clicOH Closes $25 Million Series A Funding Led by Tiger Global
Tiger Global has been a key investor in many Latin American startups, investing hundreds of millions of dollars and becoming a major player in the region’s tech industry. Most recently, the Latin American shipping solutions startup clicOH closed a $25 million Series A funding round led by Tiger Global.
Let’s look at some other Latin American startups that have received funding from Tiger Global.
clicOH
clicOH is a Brazilian startup that received funding from Tiger Global. Founded in 2011, the company provides software and services for enterprise customers, such as supermarket chains and retailers, intending to provide end-to-end digital storefronts. By relying on offline and online retail models, clicOH enables its partners to increase their revenues while delivering improved customer experience. The platform is powered by an artificial intelligence system created in collaboration with Microsoft and Intel, enabling companies to make better decisions faster.
This investment marks Tiger Global’s first venture into Latin America, signaling a tremendous opportunity for local startups to secure funding from leading investors. In addition, through this partnership, clicOH will now have access to the resources needed to expand its operations in Brazil and across Latin America. This is good news for entrepreneurs eager to innovate and build successful businesses in their respective countries, demonstrating the importance of venture investment across an entire region rather than limiting it to certain markets.
Overview
Despite being a relatively young region, Latin America has proven to be a ripe market for tech startups looking to gain venture capital and make their mark. This is especially true for those receiving backing from Tiger Global Management LLC, a prominent venture capitalist firm. Based out of New York, the investors have put their money into some of Latin America’s most successful companies.
Given the immense potential in this area, Tiger Global Management has set its sights on identifying promising investments to assist entrepreneurs in growing their businesses and helping them expand across markets—primarily inside Latin America. Their presence in this region has provided an opportunity for startups to find funding, allowing them to explore new venture possibilities and access regions where investment has traditionally been thin on the ground.
Tiger Global’s early-stage investments in Latin America include companies such as Loggi (Brazil), Rappi (Colombia/Mexico), Nubank (Brazil) and QuintoAndar (Brazil). These startups received varying amounts of funding from Tiger Global after each demonstrated promising growth results—fueled by heavy use or adaptation of emerging technology trends.
In addition to these early stage investments, Tiger Global backed Mexico’s Cabify with an undisclosed amount of non-equity capital at mid-term stage during 2018; indicating its interest and belief for the potential of this space. Other entities given his stamp of backing entail Brazilian platform UOL Diveo; A leading data center provider service.
Overall, it looks like Tiger Global is more than willing to invest in other tech giants across different sectors within the geography; while always recognizing both their existing portfolio companies going through further rounds as well eyeing upcoming ones at earlier stages — with no boundaries when it comes finding nations/cities that apply with its criteria & timing specifications sought by them regarding investment deals.
Funding Details
Tiger Global is an American investment firm specializing in private equity, venture capital, and hedge funds which has spread worldwide. Founded in 2001 by Chase Coleman and Scott Shleifer, it has offices in New York City and Singapore.
One of the Latin American startup companies that Tiger Global has recently funded include Rappi. Rappi is a cloud-based on-demand delivery service operating in Colombia, Brazil, Mexico Peru, and other countries across Latin America with more than 3 million active users as of April 2019. In May 2018, Rappi received $250 million from Tiger Global as reported by Bloomberg. This investment took Rappi’s total funding amount to $385 million with a valuation of more than $1 billion making it one of very few Latin American companies to achieve unicorn status and earning the nickname “The Amazon of Latin America” due to its expansive market dominance.
The second Latin American startup that Tiger Global recently funded is Nubank. Headquartered in São Paulo, Brazil; Nubank develops financial products and services such as debit accounts and credit cards- specifically designed for digital natives who are not being served well or not at all by traditional banks due to high costs and inefficient transactions processes. In December 2019, Nubank announced that it had raised $400 million from investors including Tiger Global , a new series G round bringing the company’s total funding to over $820 million with a valuation expectedly around 3 billion USD according to Fortune magazine reportage making it the most valuable technology company based outside Silicon Valley.
Other startups funded by tiger global include Conversa; Mercado Libre; Loggi; Gympass; Creditas; MadeiraMadeira amongst others. These financing deals increase the value of Latin American tech ecosystem as more capital enables them to become hotspots for investments, offering more growth opportunities. In addition, the increased competition between startups creates better products leading to greater consumer satisfaction.
Rappi
Rappi, a Colombian on-demand delivery service, is one of the Latin American startups to have received funding from Tiger Global. The company was founded in 2015 by three friends looking to make life easier for people in Bogota, the capital of Colombia. The company quickly grew and would eventually expand its services to include groceries, home cleaning, drug store purchases and event tickets.
In 2019, Rappi raised $1 billion from Tiger Global, DST Global and SoftBank’s Vision Fund. With this infusion of capital, Rappi has since expanded its delivery services to several countries in Latin America such as Peru and Mexico.
Overview
As a leading venture capital investor with offices in New York, San Francisco, Beijing, Hong Kong and Bengaluru, Tiger Global has made sizable investments in LatAm startups since 2014. The global firm seeks to invest in companies trying to disrupt traditional markets.
Tiger Global has invested in 8 Latin American startups across four countries between 2014 and 2019. Among these startups is Rappi, Colombia’s first unicorn which has completed more than 250 million deliveries since its founding in 2015. Other investments include Nubank, a Brazil-based fintech startup; FollowAnalytics, a French mobile marketing analytics platform funded by California-based VCs; and Olist Do Brasil, an e-commerce player working to revolutionize Brazil’s retail market.
In addition to early stage funding, Tiger Global has also been active in later stage venture capital rounds for Latin American companies such as Bizongo and Kavak. These businesses have received multiple rounds of funding from the firm totaling over $800 million combined across all their rounds and exits.
The growth of Latin American tech companies shows no signs of slowing down with Tiger Global’s continued investment into this region’s prospects for success.
Funding Details
Tiger Global is one of the world’s most prominent venture capital firms. It has invested in various Latin American startups, ranging from online retail to city transportation. They have invested over US$ 500 million in Latin American startups since 2012.
Here are a few of their notable investments and the type of funding they offered.
OLX Brazil: The classifieds website received US$50 million from Tiger Global in 2013 for their series D funding round, which gave them a total valuation of over US$ 400 million.
Globo: Globo, an internet media company specializing in comedy and web video received US$ 24 million in 2014 for their series C funding round, giving them a total valuation of over US$ 500 million.
IFood: IFood, an online food ordering service based out of Brazil received US$ 30 million from Tiger Global’s Growth Capital Fund and their venture partners Kaszek Ventures and NXTP Labs in 2016. This amounted to nearly 10% of IFood’s total investment.
Clip: The Mexican mobile payment service Clip raised over US$ 44 million in 2018 through it’s Series B funding round led by Tiger Global and Dila Capital with participation from several other investors including Kaszek Ventures and Riverwood Capital. This investment gave Clip a post-money valuation close to $US 420 million.
Rappi: Colombian delivery app Rappi raised an astonishing $3 billion across six funding rounds with participation from companies such as Softbank Vision Fund , Andreessen Horowitz, Accel , Sequoia Capital , Y Combinator , Tiger Global Management and others . Most recently, they closed their Series F round at $1 billion in summer 2020 with Tiger Global Management paving the way as lead investor along with Softbank Vision Fund participating again as one of the major stakeholders.
Uala
Founded in 2015 in Buenos Aires, Argentina, Uala is an innovative fintech app that provides users a simple and intuitive banking experience. It was among the Latin American startups to receive funding from Tiger Global in June 2019. The startup received US$30 million investment from the venture capital firm in exchange for a significant stake in the company.
Uala focuses on providing accessible banking services for Latin American users, allowing them to manage their finances from one platform – from getting a loan conveniently to online payments. The company also offers various services such as budgeting tools, savings calculators and credit score boost services.
The product’s user-centered design seeks to bridge the digital divide within the region by providing access to financial services for those who may not have had an opportunity before. Uala has received praise from Forbes as one of “LatAm’s hottest fintechs” and has over 250,000 active users across Argentina, Mexico, Colombia and Chile.
By receiving funds from Tiger Global Management’s portfolio of investments – which include some of Latin America’s most successful startups such as Rappi (Colombia), Nubank (Brazil) and Aplazame (Spain) – Uala is poised to become a major player in Latin America’s fast-growing fintech market.
Overview
Tiger Global is a venture capital firm founded in 2001 and has invested in some of the highest profile tech startups, such as LinkedIn, Facebook, JD.com and Spotify. Since 2017, the firm has also been actively investing in Latin American startups.
This guide provides an overview of the Latin American venture capital ecosystem and highlights a few notable startups that have received investments from Tiger Global. We have identified five companies that are headquartered in Latin America, each offering its unique product or service: Nubank (Brazil), Rappi (Colombia), Cornershop (Chile), Quinto Andar (Brazil) and Clip (Mexico).
We will analyze their products and dive into why they have been attractive investments to Tiger Global. We will also compare them against two similar. Yet, competitive companies based outside of Latin America – Adyen from The Netherlands and Transferwise from Estonia – to see what sets them apart from their counterparts worldwide. Finally, we will look at how these investments are helping to shape the future of venture capital for other Latin American entrepreneurs who want to make their mark in the world.
Funding Details
Tiger Global is a growth-dollar venture fund based in New York City. Founded and managed by investments guru Lee Fixel, the fund seeks high returns by investing in companies with innovative technology and transformative business models. They have invested in over 70 startups across Latin America ranging from fintech, ecommerce, mobility, marketing and edtech firms.
In terms of funding, Tiger Global’s deals typically range from $25 million to $30 million but have gone up to $50 million or even higher depending on the company’s needs and potential. Some of the leading startups that have received funding from Tiger Global include Cornershop ($22 million), Rappi ($11 million), Nubank ($30 million), Liv Poynt Inc. ($21 million) and Creditas Solutions SA ($150million). All these firms are at the cutting edge of innovation and provide much needed solutions for Brazilians and other Latin American countries.
Conclusion
The investment activity of Tiger Global in the Latin American region is an important indicator to measure the maturity of the regional ecosystem. The investment criteria used by Tiger Global to make decisions are scattered across the tech, market, and business development capacities of each entrepreneur.
From a financial perspective, most of its investments aim to provide high returns quickly. Therefore, when assessing potential investments, analysts must consider what is distinctive about each opportunity and which stage the company is at in its life cycle. This will help identify potentially lucrative opportunities in Latin America and offer investors insight into how to approach new markets for venture capital or other forms of startup funding.
Overall, a wide variety of startups from diverse industries have received backing from Tiger Global through direct equity investments or participation in rounds led by other venture capital firms. Of course, different investments will require different approaches considering unique risks and opportunities associated with any given industry or region. Still, this data suggests that Latin America’s startup scene has room to grow and continue developing innovative companies that can capture the attention of Tiger Global’s investment team.