TPG Growth has committed around $100 million in a joint venture with India’s Smile Group for helping Internet and e-commerce companies build and scale their businesses across emerging markets such as India and Africa.
TPG and Smile will co-invest through their joint venture, Katalyzers, which will work with Internet companies in the marketplace, classified listings, local commerce, digital media, e-commerce and mobile space. Katalyzers will help rollout their businesses across Asia and other emerging markets.
After identifying opportunities, the joint venture will co-invest through Katalyzers in customers’ emerging market operations, pick some sweat equity and offer all support needed to create a fresh revenue stream. Over past few years, Smile has done similar alliances with AirBnB, Yahoo!, under the same model.
“We will bring together on one common platform local Asian knowledge, experience of building businesses, in-house talent of entrepreneurs, media and technology professionals, partnerships with marketing and performance media companies and now in partnership with TPG, deep financial assets for co-investment opportunities,” Harish Bahl, founder of Smile Group said in a statement.
Over years, Bahl has founded several e-commerce startups in India and also worked with Silicon Valley startups such as AirBnB to help them expand beyond U.S.
“Bringing companies to the international markets will require deep expertise and capital,” Keith Nilsson of TPG Growth said in a statement. “TPG Growth looks forward to supporting emerging technology companies in their endeavour to enter new overseas markets in partnership with Katalyzers.”