Private equity firm Affirma Capital has fully exited its position in TBO Tek, securing a 12x return on its 2018 investment. The sale, completed in the third quarter of 2026, generated $468 million in capital gains. This marks the end of an eight-year partnership that helped the company transform into a global travel technology business.
Affirma Capital has finalized its exit from the travel technology company TBO Tek, ending an eight-year partnership that began in 2018. The private equity firm realized $468 million in capital gains, representing a 12x return on its initial $42 million investment. This exit comes after a structured, multi-year process that allowed the firm to monetize its stake as the company grew.
The Exit Timeline
The divestment was not a single event but a strategic plan executed in stages. The firm began reducing its holding through a secondary sale to General Atlantic in the 2023-2024 period. Following TBO Tek’s stock market listing in May 2024, Affirma Capital continued to sell its remaining shares in the open market, finally completing the full exit in the third quarter of 2026. This approach allowed the private equity firm to capture value while the company scaled its operations globally.
Financial Performance and Growth
TBO Tek has shown strong operational growth alongside this transition. In its Q1 FY27 report, the company announced an 81% year-on-year increase in revenue, reaching ₹926 crore. Operating profit, measured as adjusted EBITDA, rose by 77% to ₹150 crore. This growth has been driven by the company’s expansion into international markets, moving well beyond its original domestic business focus.
Risks and Investor Monitorables
While the company has demonstrated strong growth, investors should consider the specific risks associated with its business model. The travel and tourism sector is highly cyclical, meaning it is sensitive to economic conditions and geopolitical tensions, particularly in regions like the Middle East. Any instability in these areas can impact travel volumes and, consequently, company margins.
Furthermore, TBO Tek’s stock has traded at higher valuation multiples compared to some segments of the broader market. This creates a situation where the company must consistently deliver high growth to justify its price. If growth slows down or if there are delays in executing its international expansion plans, the stock could face pressure. As a global operator, the company also faces risks from foreign exchange rate fluctuations, which can affect its bottom line.
Looking ahead, the key update for investors will be the company’s ability to sustain its revenue and margin growth in the coming quarters. Monitoring how the company navigates the volatile global travel environment and manages its operational costs will be essential for understanding its future performance.