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Toward a Nightmare Year? This Is How Tiger Global’s Investment Is Faring in Brazil

In Nubank, the market value of Tiger’s stake fell by $468.1 million this quarter compared to the last quarter of 2021

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May 03, 2022 | 04:50 pm

Bloomberg Línea — Tiger Global is heading for the worst year in its history at a time when high-growth tech companies are experiencing difficulties. In a letter to investors that Bloomberg had access to, the company said that “April contributed to a very disappointing start to 2022 for our public funds” and that “markets have been uncooperative due to the macroeconomic backdrop, but we don’t believe in excuses and therefore will offer none.”

People familiar with the matter – who asked not to be identified because the discussions are private – told Bloomberg that the company’s hedge fund fell 15 percent last month, bringing the annual loss to 44%. Last year, Tiger racked up more global holdings than in the past few years combined since 2012, according to Pitchbook data.

In Latin America, Tiger arrived quietly and invested in pioneer e-commerce and tech companies -- at least since 2006 -- such as NetShoes, Peixe Urbano, MercadoLibre, and Despegar.

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Today, for listed companies, Tiger has stakes in Stone (STNE), XP (XP), GetNinjas (NINJ3), and Nubank (NU).

In Nubank, Tiger is one of the largest shareholders and the market value of the New York-based manager’s stake in Nubank Holdings fell by $468.1 million this quarter compared to the last quarter of 2021, according to Bloomberg data.

The manager also has in its portfolio recent investments in startups such as Nowports, Oico, ZAK, Pomelo, and Favo and unicorns such as Nuvemshop (Tiendanube) and NotCo, the Chilean foodtech, as well as unicorns that recently made layoffs of hundreds of employees in Brazil, such as Loft and Facily.

At Bloomberg Línea’s request, Brazil’s antitrust watchdog Cade said there are four concentration agreements involving Tiger Global Management in Brazil:

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  • Acquisition of a minority equity stake in B2W Companhia Digital, the holding company of Americanas shops
  • Acquisition of an indirect minority stake in the share capital of Hotel Urbano
  • Indirect acquisition of an equity stake in GetNinjas
  • Indirect acquisition of a stake in the share capital of 99 Taxis

Bloomberg Línea found that Tiger Global Management participated in rounds that together generate about $1.4 billion invested in Brazilian startups (excluding listed companies). See the amounts of the rounds that the manager participated in Brazil:

Oico - $5.5 million

Inventa - $20 million

Facily - $63 million

Zak - $15 million

Favo - $26.5 million

Cora - $116 million

Loft - $425 million

Hotel Urbano - $48.9 million*

*Hotel Urbano, rebranded Hurb, said Tiger no longer has a stake in the company