SoftBank Vision Fund is all set to increase its stake in Indian logistics company Delhivery Pvt. Ltd to 25.72 per cent through a secondary transaction, according to a regulatory filing accessed by business intelligence platform paper.vc.
The transaction is currently awaiting the approval of India’s competition watchdog Competition Commission of India (CCI).
“If and when CCI approves this transaction, it would result in an increase in Softbank’s shareholding, from the current holding of 22.44% to a proposed 25.72%,” the filing further stated.
It is understood that the Softbank Vision Fund is in the process of acquiring shares amounting to 3.28 per cent in the Gurugram-headquartered company. It, however, could not be ascertained if the Japanese behemoth will be picking up the stake from more or more shareholders.
Earlier this year, Delhivery had raised over $400 million in funding, led by Softbank at a post-money valuation of $1.5 billion. Following that transaction, Softbank became the largest shareholder in Delhivery followed by Tiger Global and Nexus Venture Partners, who currently hold 15.38 per cent and 14.77 per cent, respectively. The company also counts private equity firm Carlyle and Chinese conglomerate Fosun International among its list of backers.
Founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan and Kapil Bharati, Delhivery provides transportation, warehousing, freight services, and overall fulfillment services to various customers in over 2,000 cities across India.
The founders are said to collectively own as much as 8.51 per cent stake in the company currently.
Early September, Delhivery received funding to the tune of $115 million from Canada Pension Plan Investment Board (CPPIB).
Apart from the funding news, Delhivery, which competes with the likes of Blackbuck and Rivigo, has been making headlines for adopting the inorganic route to expand it its exposure in the country’s logistics sector.
Earlier this year, it acquired the Indian operations of Dubai-based logistics company Aramex.
According to data available with Tracxn Labs in December last year, startups operating in the digitally-driven logistics and supply chain sector in India attracted investments worth $1.89 billion till then in 2018.
This year too, say experts, the momentum is expected to continue.
In May, BlackBuck raised as much as $150 million (Rs 1050 crore) in a Series D equity funding round led by Goldman Sachs Investment Partners and Silicon Valley-based Accel. The startup has raised over $230 million in funding to date. Another major player operating in the space, Rivigo, raised a funding of $65 million in its ongoing Series E round, led by existing investors Warburg Pincus and SAIF Partners.