Delhivery To Acquire An Additional 4.75% Stake In Falcon Autotech

Canada Pension Plan Investment Board Exits Delhivery By Selling Remaining 2.34 Cr Shares

SUMMARY

Delhivery will acquire 84,528 shares of Falcon Autotech, valuing the warehouse automation startup at INR 1,097 Cr

Delhivery’s stake in the warehouse automation startup will increase to 39.33% post the completion of the deal

Delhivery reported a net loss of INR 102.9 Cr in Q2 FY24, down 59.5% from INR 254.1 Cr reported in the year-ago quarter

Listed logistics unicorn Delhivery is acquiring an additional 4.75% stake in warehouse automation startup Falcon Autotech for a consideration of INR 52.11 Cr.

In an exchange filing, Delhivery said its board has approved the proposal to acquire 84,528 equity shares of Falcon Autotech. The deal values Falcon at around INR 1,097 Cr and will be completed by December 31, 2023.

“The board of directors of the company in its meeting held on November 04, 2023, have considered and approved the proposal to acquire an additional 4.75% equity share capital of Falcon Autotech Private Limited (an associate company of Delhivery Ltd.) from its promoters and executives at a total consideration of INR 52 Cr (approx),” the filing said.

Delhivery’s stake in the warehouse automation startup will increase to 39.33% post the completion of the deal.

The fresh investment comes nearly two years after the logistics giant first invested in Falcon. In January 2022, Delhivery (then a private unlisted company) invested an undisclosed amount in the UP-based startup.

According to Delhivery’s filing, Falcon had a turnover of INR 280.70 Cr in FY23, up from INR 203.64 Cr in FY22. The startup, incorporated in 2010, “designs, manufactures, supplies, implements, and maintains warehouse automation systems in India and globally”, as per the filing.

Meanwhile, Delhivery reported a net loss of INR 102.9 Cr in the September quarter of FY24, down 59.5% from INR 254.1 Cr reported in the corresponding period of the previous financial year. However, loss grew 15% from INR 89.5 Cr in the preceding June quarter.

Revenue from operations increased both on a year-on-year (YoY) and a quarter-on-quarter (QoQ) basis to INR 1,941.7 Cr in Q2 FY24. It stood at INR 1,796.1 Cr in the year-ago quarter and INR 1,929.8 Cr in Q1 FY24.

The logistics major also announced a few leadership appointments earlier today. Delhivery cofounder Suraj Saharan will take over as the chief people officer, while Varun Bakshi will take over as the head of business development and part truckload freight business, effective January 9, 2024.

Vivek Pabari, SVP of corporate finance, will also take up additional responsibilities of investor relations & treasury, the company said.

Shares of Delhivery ended Friday’s trading session marginally higher at INR 402.25 on the BSE.