TR gets 3.4x return on Flipkart, opens India office
TR Capital secured a 3.4x net return on its investment in Indian e-commerce giant Flipkart, having sold its stake in conjunction with Walmart’s acquisition of the business. The secondaries specialist announced the exit to coincide with the opening of its office in Mumbai.
The firm said it exited via share buyback that valued Flipkart $20 billion, ending a more than three-year holding period. AVCJ found out the money multiple from sources familiar with the transaction.
TR has been active in India since 2008, completing nearly 20 deals, including secondary direct investments such as Flipkart, fund restructurings, and purchases of LP positions in funds. Indian Innovation Fund numbers among the restructurings, while recent direct investments include microfinance specialist Arohan Financial Services and eyewear chain Lenskart Solutions.
“Private equity in India is maturing and the development of the secondary market is a natural consequence of the large volume of private equity investments during the past fifteen years. TR Capital is well positioned to provide liquidity solutions in these high-quality companies and we look forward to further enhancing our investment portfolio and building a strong local team,” Paul Robine, the firm’s founding partner and CEO, said in a statement.
TR was established in 2007 and has executed 33 transactions across Asia via three funds. The firm, which also has offices in Hong Kong and Shanghai, currently manages capital commitments of $400 million.
The Flipkart exit was completed two days before Walmart agreed to pay $16 billion for a 77% stake in the company, enabling multiple investors to sell their stakes. Flipkart makes 500,000 deliveries a day and achieved gross merchandise value and net sales of $7.5 billion and $4.6 billion, respectively, for the year ended March 2018. The company has yet to turn profitable.
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