Post Date : August 2, 2021
New age domestic logistics giant and supply chain firm Delhivery has signed a pact to acquire a 100 per cent stake in rival express logistics player Spoton Logistics, multiple industry sources have reported.
The IPO-bound company is backed by marquee investors like Softbank, Tiger Global Management and Carlyle.
“The deal has been signed. Delhivery is keen to scale up ahead of its much anticipated market debut,” one of the individuals said.
Recently, a unit of US transportation giant FedEx had invested $100 mn into Delhivery, which is also backed by CPPIB, Fidelity and GIC.
“The deal valuation is around $200 mn and it will facilitate an exit for the promoter private equity funds Samara Capital & Xponentia Fund Partners,” said another source, adding that the deal is likely to be closed in the next 2-3 weeks.
A third individual confirmed the same, who spoke on the condition of anonymity.
In August 2018, a consortium of Samaara Capital and Xponentia Fund Partners purchased Spoton Logistics for around INR 550 crores. PE firm India Equity Partners completely exited the firm with this deal.
Delhivery co-founder and chief executive Sahil Barua had indicated last month that the firm plans to list within the next 6 to 8 months and raise a primary issue in the range of $400 mn to $500 mn.
“We are going to be more acquisitive than we have been in the past. It is because there is a mismatch on valuation. We are not going to buy anything for $100 million,” he added.
Founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Kapil Bharati and Suraj Saharan, IPO-bound Delhivery reported a loss of INR 284 crore during the financial year 2019-2020. It came down from INR 1,781 crore in the financial year 2018-2019.
The revenue rose by 74 percent to INR 2,986.4 crore during the financial year 2020.
About Spoton Logistics:
Founded in 2012, Spoton Logistics has a team of more than 1600 plus employees and operates a pan India network covering 300+ locations and over 22,000+ pin codes. It has 13 major depots and 35 transit hubs to facilitate timely and secure movement of goods.