Canada Pension Plan Investment Board (CPPIB), one of the world’s largest retirement funds, is set to make a $150 million (₹1,040 crore) secondary market investment in Delhivery which is a new-age logistics company.
“The secondary stake sale is likely to be completed after the approvals are in place, valuing Delhivery at $1.5 billion,” a person close to the matter told ET.
The deal will see CPPIB, which manages $392 billion in assets, pick up a stake of about 8 per cent in the Gurgaon-based company, according to the sources.
Delhivery, based out of Gurugram, was founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan and Kapil Bharati. The company’s vision is to become the operating system for commerce in India, through a combination of world-class infrastructure, logistics operations of the highest quality and cutting-edge engineering and technology capabilities.
While, CPPIB is one of the world’s largest retirement funds, is buying the shares from homegrown private equity firm Multiples Alternate Asset Management,
Venture capital firm Nexus Venture Partners, an early investor in Delhivery, may also liquidate some of its shareholding.
Delhivery already counts heavyweights such as Soft-Bank Vision Fund, private equity firm Carlyle Group and Chinese conglomerate Fosun International among its backers.
Moreover, CPPIB’s investment in Delhivery marks its second investment in the Indian startup space after having participated in the $322 million funding round of edtech venture Byju’s in December last year.
Delhivery has raised more than $400 million in its latest round of equity financing which was led by SoftBank Vision Fund, propelling it into the unicorn club, comprising privately-held companies with a valuation of $1 billion or more. Also, SoftBank holds a 22.4% stake in the company.
The logistics company has been moving away from its dependence on ecommerce by diversifying into areas such as cross-border, business-to-business logistics, among other areas.
Delhivery now provides the full suite of logistics services, including express parcel transportation, freight, reverse logistics, cross-border, business-to-business, business-to-consumer, warehousing and technology services, and says it processes more than 500,000 parcels a day across 450 million transactions to date.
For fiscal 2018, the company reported revenue of Rs 1,070.80 crore, up almost 43% from the year ago.